Question

Multiple copies of the purchase order are prepared for recordkeeping and distribution with a copy of the purchase order sent to the vendor and one retained by the purchasing department. In addition, for proper informational flow and internal control purposes, a version of the purchase order would be distributed to the ___, __, __ departments.

Answer 1

Answer:

B. Accounts Payable, Receiving and Inventory Control Department

Explanation:

First, the Multiple Choices

A. Accounts Payable, Receiving, and Stores Control Departments.

B. Accounts Payable, Receiving, and Inventory Control Departments.

C. Accounts Payable, Accounts Receivable, and Receiving Departments.

D. Accounts Payable, Receiving, and Production Planning Departments.

Accounts Payable

The organisation is making a purchase, hence, there will be financial implications and payments that need to be made for the purchase. Therefore Accounts payable is involved

Receiving

The department for receiving the order from the vendor is also crucial, the responsibility of this department is to ensure that all that was ordered and paid for on the purchase order sent to the vendor were delivered. The receiving department will also ensure that there are no defects in the supplied materials.

Inventory Control

Inventory Control is crucial as the department is responsible for ensuring that the optimal level of inventory is supplied and kept per time. The inventory control department should get a copy of the purchase order, compare with available inventory and see the incoming order is adequate for the optimal inventory size for the organisation.

Departments not Involved

Stores Control Department in option A is not involved because stores control takes care of the store in general while inventory control ensures that optimal stock level is maintained.

Accounts Receivable in option C is not involved because money is not coming in

Production Planning in option D is not involved because the company is not planning to produce, it is purchasing.