Proper authorization for acquisition is useful for management as an internal control procedure, because it:
A) ensures that goods/services are used efficiently by company employees.
B) ensures that goods/services were purchased from approved vendors.
C) ensures that goods/services were purchased according to company policy.
D) ensures that goods/services were purchased at the lowest possible price.

Question

Quizplus · Accepted Answer

Proper authorization for acquisition ensures that goods/services were purchased according to company policy, which helps management maintain control over expenditures and prevents employees from making unauthorized purchases that could be detrimental to the company's finances. While ensuring efficiency, approved vendors, and low prices are important factors, they are not the primary purpose of proper authorization for acquisition.

Proper Authorization for Acquisition Is Useful for Management as an Internal