Author Question: List and describe the 5 steps in the purchase-to-pay process.[br][br][b][color=red]Question ... (Read 70 times)

ashley · **on:** Jul 5, 2018

List and describe the 5 steps in the purchase-to-pay process.

Question 2

According to an ABC system, CP8 is ________ under the traditional system.

Products S5 and CP8 each are assigned 100.00 in indirect costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.

A) undercosted
B) overcosted
C) fairly costed
D) accurately costed

mjenn52 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

1 . Requirements determination which includes preparing the purchase requisition.
2 . Purchase order processing which includes preparing and recording purchase orders. In an enterprise system where RFQs are used, it also includes analyzing vendor quotations.
3 . Goods receipt which includes comparing the amount ordered to the amount received.
4 . Invoice verification which includes receiving the invoice making a three way match of the purchase order, the receipt, and the vendor invoice and recording accounts payable.
5 . Payment processing which includes preparing and recording cash disbursements and updating the cash and accounts payable accounts.

Answer to Question 2

Answer: A