chap009 - Chapter 9 The Acquisition/Payment Business...

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Chapter 9 The Acquisition/Payment Business Process Review Questions R1. List eight objectives of the acquisition/payment process. 1. Purchase items from reliable vendors. 2. Purchase high quality, or at least items of the desired quality. 3. Obtain the items at the best possible price. 4. Purchase only those items that are properly authorized and are for legitimate company purposes. 5. Have resources available and in a useful condition when they are needed by the company. 6. Receive only those items ordered, and receive all the items ordered. 7. Control items received so they are not lost, stolen, or broken. 8. Pay for the items received in a timely manner and to the appropriate party. R2. How is the acquisition/payment process related to the conversion process, the sales/collection process, the human resource process, and the financing process? The interaction between the acquisition/payment process and other business processes is fairly straightforward. Cash made available by the financing process is disbursed in the acquisition/payment process in exchange for goods and services. Some goods and services made available by the acquisition/payment process are sold in the sales/collection process; others are used up in the conversion process. The number of units expected to be sold in the sales/collection process, adjusted for desired changes in inventory balances, determines the number of units that an organization should plan to produce in the conversion process. Planned production drives the amount of materials and other resources to be acquired in the acquisition/payment process, as well as personnel resources used and paid for through the human resource process. This planning determines the financial resources that an organization must secure and manage through the financing process. Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e 115
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Chapter 9 R3. What is the difference between a purchase requisition and a purchase order? A purchase requisition is a request for goods, made internally by a department, function, or individual. This request is reviewed and if it is approved, the organization will enter into a purchase agreement with a selected vendor. The act of entering into a purchase agreement with a vendor is called a purchase order. A purchase requisition is an internal document sent from a department, function, or individual to an organization’s purchasing agent(s). A purchase order is the document sent by the purchasing agent to the vendor. R4. What is an open purchase order? An open purchase order is a purchase order that has been sent to a vendor but has not yet been filled (i.e., goods and services have not yet been received). R5.
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This note was uploaded on 01/17/2011 for the course INFO SYSTE 115 taught by Professor Baker during the Spring '10 term at Strayer.

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chap009 - Chapter 9 The Acquisition/Payment Business...

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