To Minimize the Number of Checks That Need to Be

question 45

Multiple Choice

To minimize the number of checks that need to be written to pay vendor invoices a company should use a

• A) voucher system.
• B) just-in-time inventory system.
• C) nonvoucher system.
• D) evaluated receipt settlement system.

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Definitions:

Perfect Substitutes

Goods or services that can be used in exactly the same way and to the same extent, where one can completely replace the other in consumption.

Income Effect

The alteration in income for a person or the economy and the resulting influence on the demand for a certain good or service.

Substitution Effect

The economic principle indicating how consumers react to a change in price by substituting a more expensive item with a cheaper alternative.

Price

The total money demanded to secure a good or service.