What Is the Best Way to Prevent the Acceptance of Goods

question 24

Multiple Choice

What is the best way to prevent the acceptance of goods that were never ordered?

• A)Order only from approved vendors.
• B)Enforce an appropriate conflict of interest policy in place.
• C)Match the packing slip to a purchase order before accepting delivery.
• D)Require specific authorization from the purchasing manager before accepting any goods.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and are easily traceable to it.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Job Order Cost System

An accounting system that accumulates costs by individual jobs or batches rather than processes.

Manufacturing Overhead Applied

The portion of manufacturing overhead costs assigned to individual cost objects based on a predetermined rate or method.