Inspects the goods and records their quality and quantity.
enters purchases into the accounts payable system after comparing the purchase order, invoice, and receiving report.
a cover sheet containing all supporting documentation for an acquistion
inventory method that focuses on estimating future demand
Document indicating a reduction in the amount owed to a vendor because of returned goods or an allowance method,
Request for quotation
Documents used to request competitive bids from vendors
Accounts payable master file
A listing of the amount owed to each vendor at a point in time
A document used to establish a formal means of recording and controlling acquisitions.
Check register (Cash disbursement journal)
The listing or report that includes all cash payments for a given period.
Counters in receiving do not have access to quantities shown on purchase orders.
Document used to request a purchase
Approved vendor list
A summary of vendors approved for use by the purchasing function.
A collection of documents that are reviewed and approved to authorize a transaction.
Prepared to document the receipt of deliveries from vendors.
The document issued to a vendor to initiate a purchase.
Document prepared by the purchasing department indicating the description, quantity, and related information for goods and services that the company intends to purchase.
The review of purchasing documentation prior to authorizing payment to vendors.
In the expenditure cycle, the primary external exchange of information occurs with
Starting point in revenue cycle?
What are the optimal prices for each product or service
To accomplish the objectives set forth in the expenditure cycle, a number of key management decisions must be addressed. Which of the decisions below is not ordinarily found as part of the expenditure cycle?
Economic order quantity
The first major business activity in the expenditure cycle is ordering inventory and supplies. The traditional approach to management of inventory to ensure sufficient inventory to maintain production is known as?
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?
The decision of when to place an order in a traditional inventory system is specified by the
To reduce required inventory levels by scheduling production by estimating needs
One alternative approach to managing inventory is materials requirements planning (MRP). What is a key feature of this approach?
The uncertainty about when materials are needed is reduced, thus reducing the need to carry large levels of inventory.
The major advantage of an MRP inventory system is that it reduces inventory levels. This is because
A just in time inventory system
The inventory management approach that attempts to minimize, if not eliminate, carrying and stock out costs is?
MRP schedules production to meet estimated sales needs; JIT schedules production to meet customer demands
What is the key difference between the MRP and JIT inventory management approaches?
Credit rating of the vendor
A key decision in ordering is selecting a suitable vendor. Which of the following would not be a major criterion in vendor selection?
A purchase order
The paper document or electronic form that formally requests a supplier to sell and deliver specified products at designated prices is called?
All of the above
paper document or electronic form that formally requests a supplier to sell and deliver specified products at designated prices
request for delivery of certain items and quantities
A contract between the buyer and vendor once accepted by the vendor
A purchase order is
Blanket purchase order
A standing order to purchase specified items at a designated price, from a particular supplier for a set period of time, is called a?
Deciding if the delivery should be accepted
The receiving department has two major responsibilities in connection with the expenditure cycle. Identify one of these responsibilities
Price of the items
Which of the following is generally not shown on a receiving report?
Requiring all suppliers to have bar codes on their items to allow electronic scanning upon delivery by the receiving department
What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?
All of the following technologies could be useful aids in the receiving process except?
accounts payable department; controller
Vendor invoices are approved by the _______, which reports to the _______?
A ________ system is a system in which an approved invoice is posted to the vendor account and is stored in an open invoice file until payment is made by check.