An Internal Control Benefit of Centralized Purchasing in an Organization

question 97

Multiple Choice

An internal control benefit of centralized purchasing in an organization includes

• A)separation of authorization from accounting.
• B)favorite vendors used multiple times.
• C)increased compensation of agents through side agreements.
• D)mathematically accurate vendor invoices.

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Definitions:

Special

Pertaining to or designating a unique or distinct category, often used to denote something that is exceptional or beyond the ordinary.

Ordinary Holder

A typical investor or shareholder who possesses a security or financial instrument without any special rights or privileges.

Transferor

An entity or person who transfers or conveys rights, property, or other assets to another party, the transferee.

Rights

Entitlements or freedoms granted by legal, social, or moral principles that are inherent to all human beings.