Which of the Following Statements Does Not Describe the Benefits

question 70

Multiple Choice

Which of the following statements does not describe the benefits of utilizing distribution centers over direct store delivery?

• A) More accurate sales forecasts are possible when retailers combine forecasts for many stores serviced by one distribution center rather than doing a forecast for each store.
• B) Distribution centers enable the retailer to carry less merchandise in the individual stores.
• C) The use of distribution centers increases inventory investment.
• D) It is easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution center as needed.
• E) The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts.

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Definitions:

Separation Of Duties

is a preventive security measure in organizations to reduce the risk of fraud or error, requiring more than one person to complete key tasks.

Voucher System

A control mechanism in accounting that uses vouchers to record transactions and ensure expenditures are properly authorized.

Voucher System

A method in accounting used to authorize and document transactions, ensuring payments are made for authorized purchases only.

Cash Receipts

The collection of money, including coins, currency, checks, and electronic fund transfers, received by a business.