Asked by Emmanuel Garcia on Jul 17, 2024
Verified
The responsibility for ordering receiving and paying for merchandise should be assigned to different individuals.
Merchandise Management
It involves the planning and control of the purchasing, handling, storage, and sale of goods in a retail setting to maximize profits.
- Recognize the fundamental rules for dividing responsibilities to boost the efficiency of internal controls.
Verified Answer
LL
Logan LaurentJul 23, 2024
Final Answer :
True
Explanation :
Separation of duties is an important internal control measure that helps to prevent fraud and errors. By assigning different responsibilities to different individuals, there is a greater level of oversight and accountability in the purchasing process. This reduces the risk of mistakes or malfeasance, and helps to ensure that purchases are made in accordance with company policy and budget constraints.
Learning Objectives
- Recognize the fundamental rules for dividing responsibilities to boost the efficiency of internal controls.
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