The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. Although the department supervisor can indicate a preferred supplier or vendor on purchase requisitions, the purchasing department has the responsibility for making the
final decision on a vendor.
a. Adheres to sound internal control procedures
b. Violates sound internal control procedures
c. Neither strengthens nor violates internal control
a
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What are the advantages and disadvantages to foreign direct investment?
What will be an ideal response?
A narrow span of control is appropriate when
A. the organization is flat. B. performance measures are comparable. C. many reporting levels exist. D. the manager can easily control many subordinates. E. jobs are similar.
Sunshine Inc. tightened its credit policy, resulting in a $10 change in net present value (NPV) on a daily basis. If Sunshine's expected return is 8%, then the change in the value of the firm is_____. (Note: Assume 360 days in a year)?
A. $20,000? B. ?$5,000 C. ?$34,000 D. ?$45,000 E. ?$60,000
Briefly describe the stages used in the two-stage allocation process for assigning overhead costs.
What will be an ideal response?