In the Billing Function Described in the Text, the Control

question 29

Multiple Choice

In the billing function described in the text, the control plan that contributes to effective operations is:

• A) edit the shipping notification for accuracy
• B) independent billing authorization
• C) compare input shipping notices to sales order master data
• D) review shipped not billed sales orders (tickler file)

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Definitions:

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.