Question

For effective internal control, the purchasing manager generally should:

a. Perforate, or otherwise cancel supporting documentation after payment is mailed.
b. Establish the agreement of the vendor’s invoice with the receiving report and purchase order.
c. Be responsible for negotiating terms with vendors.
d. Defer to the accounts payable department for authorization of purchases.

Answer 1

C) Be responsible for negotiating terms with vendors.

Step-by-step explanation:

In order effective internal controls, different employees should have different roles in an organization, they should have segregated duties.

For example; an employee of the purchasing department is responsible for searching for new vendors that comply with the organization's requirements. The purchasing manager is responsible for negotiating the price of supplies and materials. The production department is responsible for requesting new supplies or materials. The finance department is responsible for writing down checks. The general manger signs the checks after reviewing supporting information.