After an Organization Compares the Vendor Invoice with the Purchase

question 51

Multiple Choice

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into what file?

• A) Purchase order file
• B) Open invoice file
• C) Accounts payable file
• D) Receiving transaction file

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Definitions:

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, showing the relationship between cost, volume, and profit.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, making it more useful for planning and control purposes.

Fixed Costs

Expenses that do not vary with the level of production or sales over the short term.

Management by Exception

A management strategy where managers only intervene in decision making when performance deviates significantly from standards, allowing more focus on important issues.