A Responsibility That Should Be Assigned to a Specific Employee

question 16

Multiple Choice

A responsibility that should be assigned to a specific employee and not shared jointly is that of:

• A)Access to the company's safe deposit box
• B)Placing orders and maintaining relationships with a prime supplier
• C)Attempting to collect a particular delinquent account
• D)Custodianship of the petty cash fund

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Definitions:

EOQ Model

Economic Order Quantity model; an inventory management method used to determine the optimum order quantity that minimizes the total inventory holding costs and ordering costs.

Shortage Costs

Costs that fall with increases in the level of investment in current assets.

Carrying Costs

Expenses incurred for holding inventory, including storage, insurance, and handling costs.

Bond Yields

The amount of return an investor realizes on a bond, calculated by dividing annual interest payments by the bond's current market price.