An internal control benefit of centralized purchasing in an organization includes
A)separation of authorization from accounting.
B)favorite vendors used multiple times.
C)increased compensation of agents through side agreements.
D)mathematically accurate vendor invoices.

Question

Quizplus · Accepted Answer

Centralized purchasing allows for the separation of authorization from accounting, which helps to prevent fraud and ensure that proper financial controls are in place. This means that those who are responsible for approving purchases are different from those who handle the financial aspects of those purchases, reducing the risk of errors or intentional misdeeds. Choices B, C, and D are not benefits of centralized purchasing specifically.

An Internal Control Benefit of Centralized Purchasing in an Organization