The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based on this flowchart.

1. Some organizations prefer using alternative two. What are the advantages of using alternative two instead of the alternative one? Be specific.

2. What is the difference between purchase requisition and purchase order?

3. Under what circumstances can you envision management using alternative one rather than alternative two?

4. Some accountants argue that the receiving department should be eliminated. Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved.

Purchases Data Processing Department Receiving Accounts Payable Purchase Requisition File Bind Copy Blind Copy Acct Pay Copy Acct Pay Copy File Copy Purchase Order Open Purchase Order File Prepare Purchase Orders Vendor Fle Bind Copy Acct Pay Copy File Copy Review and Distribute Purchase Order Blind Oy ActPay Coon File Copy Purchase Order File Vendor ALTERNATIVE ONE Purchases Data Processing Department Receiving Accounts Payable Transaction List Purchase Requisition File Blind Copy Acct Pay Copy Prepare Purchase Orders Review and Fle Open Purchase Order File Vendor File Transaction Blind Copy Act Pay Copy Purchase Order Transaction List Lt Vendor File ALTERNATIVE TWO