Which of the Following Controls Would Be the Least Effective

question 70

Multiple Choice

Which of the following controls would be the least effective in preventing paying the same invoice twice?

• A)Only pay from original invoices.
• B)Cancel each document in the voucher package once the check is prepared and mailed.
• C)Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report.
• D)Allow only the accounts payable department to authorize payment for vendor invoices and allow only the cash disbursements department to cut and mail checks to vendors.

Grasp the concepts of inventory management and its financial implications.

Understand the significance of logistics in the supply chain and its strategic value in marketing.

Recognize the trade-offs and decision-making process in logistics to optimize total logistics costs.

Understand the environmental and sustainability considerations in logistics decision-making.

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Definitions:

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding the costs of direct labor and materials.

Factory Overhead

The indirect costs associated with manufacturing, including indirect labor, indirect materials, and other expenses that cannot be directly tied to the production of goods.

Indirect Material

Items used in the production process that do not become a part of the final product, such as lubricants for machines.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are a significant component of manufacturing expenses.