Chapter 13, Part 1

One objective of accounts payable is to authorize payment only for goods or services actually ordered and received. The best way to process supplier invoices is to use

Which of the following factors is not of key importance when selecting inventory suppliers?

Which of the following is not an advantage of a voucher system?

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

Which of the following is generally not shown on a receiving report?

Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiated a(n) ________ with a client that represented the customer's long-term commitment to buy components from Hung.

The Gwallter Reece Chihuahua Sweater Co. (GRCCo) was established in 2013. It recently signed a large contract with PetCo pet stores. GRCCo will be required to track and forecast sweater sales. The technology that is used for communication between GRCCo and PetCo is

What is not an advantage of using disbursement vouchers?

What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

A(n) ________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check.

In the expenditure cycle, Financial Electronic Data Interchange (FEDI) increases efficiency by

Once a vendor is selected for a product, the vendor's identity is recorded in the

The traditional approach to inventory management generally involves

________ attempts to minimize or eliminate carrying and stockout costs.

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo.

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

What is a key feature of materials requirements planning (MRP)?

Although there are some similarities between JIT and MRP, identify one major difference below.

If available, a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

A receiving clerk notes that a delivery of 10 units has been received, but the purchase order specified 12 units. A debit memo will need to be prepared to adjust for the difference between the quantity ordered and received. Who should prepare this document?

Identify the department below that should not be able to submit a purchase requisition.

Which of the following is not an activity performed in the expenditure cycle?

EFT payments are generally performed by

The ________ specifies the point at which inventory is needed.

Just-In-Time (JIT) inventory is best characterized by

Economic Order Quantity (EOQ) includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as

Ideally, inventory purchases occur in response to ________ in a JIT inventory system.

The disbursement voucher and supporting documents are sent to the ________ for payment prior to the due date.

What is the key difference between the MRP and JIT inventory management approaches?

A major cost in the purchasing function is the number of purchase orders processed. One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price. The name of this technique is

Once a purchase request is approved, what is the next step?

A disbursement voucher contains

When would an MRP inventory approach be a preferred to a JIT inventory approach?

Procurement cards differ from corporate credit cards in which of the following ways?

Which electronic files are either read or updated when goods are ordered from a vendor?

MacDougalKids is a mid-sized manufacturer of organic baby food. MacDougalKids uses the EOQ inventory management approach. Which of the following factors would likely be least important when selecting inventory suppliers?

Vendor invoices are approved by the ________, which reports to the ________.

Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned. As a result, Hung's purchasing manager needed to send a ________ to the supplier.

Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had received a ________ from a client. The client had just requested a large quantity of components from Hung.

Materials requirements planning (MRP)

A JIT inventory system would be especially useful for a company that manufactures

A voucher package should include

The Gwallter Reece Chihuahua Sweater Co. (GRCCo) was established in 2013. It recently signed a large contract with PetCo pet stores. GRCCo will be required to track and forecast sweater sales by linking in to PetCo's sales database. GRCCo will then be responsible for shipping products to PetCo as needed. The relationship between GRCCo and PetCo is an example of

Which of the following is least likely to be a major criterion in vendor selection?

Evaluated receipt settlement increases efficiency by

Duc An Incorporated provides free coffee to employees. Starbucks delivers coffee packages, sugar, creamer, and filters each week. Every month, Starbucks sends Duc An an invoice. This arrangement is best described as a

When purchasing miscellaneous supplies, companies can reduce costs, improve efficiency, and combat employee fraud by

One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?

The first major business activity in the expenditure cycle is