Effective inventory management would have one person place the order for new inventory,a second person check it against the purchase order when it arrives,and a third person record the receipt of inventory in the accounting records.The purpose of this system is
A)to reduce spoilage.
B)to reduce storage costs.
C)to guard against stockouts.
D)to guard against internal theft and collusion.

Question

Quizplus · Accepted Answer

This system of having different individuals responsible for ordering, receiving, and recording inventory is designed to prevent internal theft and collusion by segregating duties and reducing the opportunity for any single person to both perpetrate and conceal inappropriate actions.

Effective Inventory Management Would Have One Person Place the Order