Management requires purchases above $5,000 to be submitted with cash flow projections for capital budget approval. As

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Management requires purchases above $5,000 to be submitted with cash flow projections for capital budget approval. As systems manager, you want to upgrade your computers at a $25,000 cost. You consider submitting several orders, each under $5,000 to avoid the approval process. You believe the computers will increase profits and wish to avoid a delay.


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As systems manager, is your plan to submit several separate orders appropriate? What should you do?

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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