Which of the Following Activities Does Not Occur Within the Order

question 16

Multiple Choice

Which of the following activities does not occur within the order fulfillment process?

• A) The sales department receives a customer inquiry and issues a quotation indicating price and availability.
• B) The sales department forwards a sales order to the warehouse.
• C) The warehouse forwards a purchase requisition in order to buy goods from a vendor.
• D) The warehouse prepares the shipment and produces internal documentation.
• E) The accounting department issues an invoice to the customer.

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Definitions:

Retained Earnings

Net income that the corporation retains for future use.

Operating Expenses

Expenses incurred through the normal operations of a business, including rent, utilities, and salaries, but excluding costs of goods sold.

Vertical Analysis

A financial analysis method that lists each line item in a single period financial statement as a percentage of a base line figure.

Operating Expenses

The day-to-day costs involved in running a business, excluding the cost of goods sold.