In expenditure cycles, the raw material is requested by the production depantent and submin to purchasing department. The purchasing department will process this request and order the raw material from the supplier. Which of the following factors is not of key importance when selecting inventory suppliers?

A$)$ product price

B$)$ vendor corporate structure

C$)$ product quality

D$)$ vendor delivery dependability

The new supplier selection is made by the purchasing manager after taking into consideration various issues and once the supplier meets the company requirement, the company names will be added to the approved supplier list in the database for future purchases. Restricting access to the approved supplier list can:

A$)$ help reduce the risk of fraudulent disbursements.

B$)$ cause purchase order approval delays.

C$)$ eliminate the risk of duplicate payment.

D$)$ improve the efficiency of the expenditure cycle.

Theft of either inventory or assets can posed threat in production activities. An organization can implement which of the following controls to reduce the threat of inventory theft or damage?

A$)$ review and approval of fixed asset acquisitions

B$)$ improved and more timely reporting

C$)$ better production and planning systemst

D$)$ document all movement of inventory through the production process

One of the purchasing clerks entered wrong quantity of the raw material purchase and caused delay in production. The best control procedure for accurate data entry is

A$)$ the use of on$-$line terminals.

B$)$ an access control matrix.

C$)$ passwords and user IDs.

D$)$ automation of data collection.

The receiving clerk make a mistake in counting the inventory due to large number of inventory order was received on that day. Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach:

A$)$ use of an ERP system

B$)$ require the accounting department to calculate cost of goods sold periodically

C$)$ use IT to eliminate the need for manual data entry

D$)$ use of an MRP inventory system

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?

A$)$ sales order entry process

B$)$ shipping function

C$)$ cash collection activity

D$)$ cash payments activity