ACC 409- CHAPTER 13 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++

ACC 409- CHAPTER 13 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ 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? What are the optimal prices for each product or service? Requiring all packing slips be reconciled to purchase orders before accepting a delivery of inventory would be most likely to prevent which of the following situations? A supplier delivers more inventory than ordered at the end of the year and sends an invoice for the total quantity delivered. 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? shipping function There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers' revenue cycle. 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 electronic data interchange. Which of the following is not an activity performed in the expenditure cycle? shipping The first major business activity in the expenditure cycle is ordering inventory, supplies, or services. Which of the following threats is not specific to the purchase requisition process of the expenditure cycle? purchasing from unauthorized vendors Which of the following controls can minimize the threat of stockouts and excess inventory? Perpetual inventory system Which of the following controls can minimize the threat of check alteration? The use of positive pay. Which of the following controls can minimize the threat of mistakes in counting incoming inventory? Do not inform receiving employees about quantity ordered. Which of the following controls can minimize the threat of errors in supplier invoices? The use of ERS. 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 vendor-managed inventory. The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as economic order quantity. 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 carrying costs. The ________ specifies the point at which inventory is need