The Following Set of Items Describes Activities Completed by a Company

question 59

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
-The receiving department compares the quantity received with the quantity printed on the receiving report when the purchase order was prepared.

• A)Adheres to sound internal control procedures
• B)Violates sound internal control procedures
• C)Neither strengthens nor violates internal control

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Definitions:

Consumer

An individual or group who purchases goods or services for personal use.

Producer

An individual or entity that creates or supplies goods or services.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Increase Quantity

A strategy or action aimed at raising the amount of goods or services produced or available.