Control of Inventory Should Begin as Soon as the Inventory

question 156

Multiple Choice

Control of inventory should begin as soon as the inventory is ordered. Which of the following internal control steps is not done to meet this goal?

• A) check the invoice to the receiving report
• B) check the invoice to the purchase order
• C) check the invoice with the person who specifically purchased the item
• D) check the invoice for mathematical accuracy

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Definitions:

Monetary System

A structured system for creating, managing, and distributing money in an economy.

Barter Economy

An economic system in which goods and services are exchanged directly for other goods and services without the use of money.

Efficient Price

A market condition where prices reflect all available information and resources are allocated to their most valuable use.

Efficient Quantity

The level of output where the marginal benefit to consumers equals the marginal cost of producing an additional unit, leading to optimal resource allocation.