When Automatic Purchase Orders Are Generated, to Help Make Sure

question 21

Multiple Choice

When automatic purchase orders are generated, to help make sure that goods are ordered for products that the company still needs, the company should

• A) have all purchase orders approved by the purchasing manager.
• B) have suppliers automatically replenish the shelves.
• C) ensure that re-order points are monitored.
• D) have receiving reports matched to the purchase order amounts.

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Definitions:

Population Growth

The increase in the number of individuals in a population, often expressed as a percentage of the total population.

Auto Production

The process of manufacturing automobiles, which includes the assembly of various components such as the chassis, body, engines, and electronics.

Fallacy of Composition

The incorrect belief that what is true for an individual component or member will also be true for the group or whole.

Interstate

Highways or systems of roads that cross state lines in the United States, facilitating long-distance travel and commerce.