KW Ltd Separates the Billing and Shipping Functions and Imposes

question 29

Multiple Choice

KW Ltd separates the billing and shipping functions and imposes independent checks to ensure that goods have been shipped prior to billing the customer.This is an example of:

• A)Reducing the risk of over-billing
• B)Reducing the risk of under-billing
• C)Reducing the risk of failing to bill a customer for a valid sale
• D)Eliminating the risk of failing to ship goods that have been invoiced.

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Definitions:

Customs Brokerage Firm

A company that specializes in facilitating the import and export of goods, helping businesses navigate through customs regulations and procedures.

Department of External Affairs

An historical term used for the government department in some countries responsible for foreign relations and diplomacy, now often referred to as the Ministry of Foreign Affairs.

Trade Missions

Official trips organized by governments or trade associations aimed at exploring international business opportunities and fostering economic relations.

Loan Guarantees

Financial guarantees provided by a third party (like a government or financial institution) ensuring loan repayment in case the borrower defaults.