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Luxurious firm performs its expenditure cycle activities

Luxurious firm performs its expenditure cycle activities using its integrated ERP system as follows: • Employees in any department can enter purchase requests for items they note as being either out of stock or in small quantity. • Occasionally, special items are ordered that are not regularly kept as part of inventory, from a specialty supplier who will not be used for any regular purchases. In these cases, an accounts payable clerk creates a one-time supplier record. • Each day, employees in the purchasing department process all purchase requests from the prior day. To the extent possible, requests for items available from the same supplier are combined into one larger purchase order in order to obtain volume discounts. Purchasing agents use the Internet to compare prices in order to select suppliers. If an Internet search discovers a potential new supplier, the purchasing agent enters the relevant information in the system, thereby adding the supplier

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