Chapter 15 - Expenditure Cycle

Question 1

Expenditure Cycle

Answer 1

A recurring set of business activities and related data processing operations associated with the purchase for goods and services.

Question 2

Economic Order Quantity (EOQ)

Answer 2

The optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Question 3

Reorder Point

Answer 3

Specifies the level to which the inventory balance of an item must fall before an order to replenish stock is initiated.

Question 4

Materials Requirements Planning (MRP)

Answer 4

An approach to inventory management that seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to better schedule purchase to satisfy production needs.

Question 5

Just-in-time (JIT) Inventory System

Answer 5

A system that minimizes or virtually eliminates inventories by purchasing and producing goods only in response to actual, rather than forecasted, sales.

Question 6

Purchase Requisition

Question 7

Purchase Order

Question 8

Blanket Purchase Order

Question 9

Receiving Report

Question 10

Debit Memo

Question 11

Nonvoucher System

Question 12

Voucher System

Question 13

Disbursement Voucher

Question 14

Voucher Package

Question 15

Evaluated Receipts Settlement (ERS)

Question 16

Kickbacks

Question 17

Imprest Fund