Describe Internal Control Procedures That Would (1) Detect That a Vendor

question 9

Essay

Describe internal control procedures that would (1) detect that a vendor overcharged for goods delivered, (2) prevent payment for an invoice for goods that were never delivered and (3) prevent issuing two checks in payment of the same invoice.

Conduct and interpret hypothesis tests for two independent population means.

Interpret confidence intervals for the difference between two population means.

Understand the assumptions underlying t-tests for independent samples.

Determine and apply the rejection region in hypothesis testing.

---

Definitions:

Price Lining

Grouping product prices into ranges, such as low-, medium-, and high-priced items.

Pricing Tactic

Strategic approaches used to set prices for products or services to achieve business objectives.

Prestige Pricing

Psychological pricing strategy used with goods whose quality is difficult to determine by inspection or for products about which consumers have little solid information.

Price Skimming

Setting the price of a new product higher than expected to recover development costs.