Question

Which of the following items is not a control goal of the AP/CD process?

(A) reconcile bank account
(B) minimize inventory carrying costs
(C) independent validation of vendor invoices
(D) independent authorization to make payment

Answer 1

Minimizing inventory carrying costs is not a control goal of the Accounts Payable/Cash Disbursements (AP/CD) process, which is more focused on handling payments and ensuring accuracy and proper authorization in financial transactions.

Step-by-step explanation:

The item that is not a control goal of the Accounts Payable/Cash Disbursements (AP/CD) process is (B) minimize inventory carrying costs. This objective is more aligned with inventory management and operations rather than the AP/CD process. The AP/CD process primarily focuses on the efficient handling of vendor invoices and payments. Goals such as reconcile bank account, independent validation of vendor invoices, and independent authorization to make payment are essential in ensuring that payments are made correctly and only for goods and services actually received, and that company funds are handled properly.