After the Vendor Master File Data Has Been Entered,to Best

question 77

Multiple Choice

After the vendor master file data has been entered,to best improve internal controls the

• A)vendor master file data should be matched to the accounts payable files.
• B)transaction file detail should be matched to the vendor master file.
• C)data entry should be independently verified.
• D)accounting department should file the new vendor authorization form sequentially.

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Definitions:

Special Order

A customer request for a product or service that is not generally available or outside the business’s normal operations, often requiring special pricing or production considerations.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.

Activity-Based System

A method in accounting that allocates costs to specific activities based on their use of resources, aimed at providing more accurate cost information.

Non-Volume-Based Costs

Costs that do not vary directly with the volume of production or sales, often encompassing fixed costs like rent or salaries.