Segregation of Duties Has an Important Role in Providing for Good

question 44

Multiple Choice

Segregation of duties has an important role in providing for good quality internal controls. Which of the following segregation of duties improve controls over the inventory and distribution cycle?

• A) the purchasing department should not be responsible for updating the economic order quantity
• B) the accounting staff should not be responsible for the data entry of supplier invoice detail
• C) the inventory transaction processing systems should not be accessible to the receiving department
• D) the purchasing department should not be responsible for authorizing the acquisition of or receiving the goods

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Definitions:

Aggregate Plan

A planning methodology in operations management aimed at determining overall output levels in the medium term to meet expected demand.

Aggregate Plan

A plan for production, inventory, and other resource levels, usually over an intermediate time frame, to meet expected demand.

Supply Chain

A system consisting of companies, individuals, processes, data, and assets engaged in the transportation of goods or services from the provider to the consumer.

Aggregate Planning

A process in operations management aiming to determine an optimal production plan to meet fluctuating demand in the medium term while minimizing costs.