What Is the Best Control to Mitigate the Threat of Paying

question 96

Multiple Choice

What is the best control to mitigate the threat of paying prices that are too high for goods ordered?

• A)Require the receiving department to verify the existence of a valid purchase order.
• B)Use only approved suppliers and solicit competitive bids.
• C)Only pay invoices that are supported by the original voucher package.
• D)Use bar-code technology to eliminate data entry errors.

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Definitions:

Utility Function

A mathematical expression that represents how different combinations of goods or services create levels of happiness or satisfaction for an individual or entity.

Marginal Rate of Substitution

The rate at which a consumer is able to sacrifice a certain amount of one product for another while keeping their level of satisfaction unchanged.

Good X

A term used to represent an unspecified product or commodity in economic models and analyses.

Good Y

Refers to a hypothetical product or commodity used in economic models and theories to analyze market behaviors and consumer preferences.