A Purchased Good That Can Have a Big Effect on Profitability

question 63

Short Answer

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a(n)________ item.

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Definitions:

Segregation of Duties

An internal control measure that involves dividing responsibilities among different people to reduce the risk of error or inappropriate actions in financial transactions.

Authorize and Pay

The process of approving financial transactions or disbursements and executing the payment accordingly.

Control Principle

An accounting principle that states the need for procedures and measures to regulate and ensure the accuracy of financial records.

Segregation of Duties

A key internal control mechanism that involves dividing responsibilities within an organization to reduce the risk of fraud or error.