Office Management & Administration Flashcards

A records retention schedule primarily specifies which of the following?

Answer: How long each record type is kept and when it is destroyed or archived

A retention schedule sets how long each category of records is kept and how it is disposed of.

Which filing method arranges records by number and requires a cross-reference index to locate files by name?

Answer: Numeric

Numeric filing is indirect, so an alphabetic index is needed to find a file's number.

An office manager compares the cost of a new copier lease against the productivity it will produce. This is an example of:

Answer: Cost-benefit analysis

Cost-benefit analysis weighs expected costs against expected gains before a decision.

Under a zero-based budget, each department must:

Answer: Justify every expense from scratch each period

Zero-based budgeting starts at zero and requires justification for all expenditures.

Which document is issued by a buyer to a vendor to authorize a purchase at agreed terms?

Answer: Purchase order

A purchase order is the buyer's formal authorization to the vendor.

Matching the purchase order, receiving report, and vendor invoice before payment is called:

Answer: Three-way match

A three-way match confirms what was ordered, received, and billed agree before paying.

Which inventory approach orders supplies only when stock falls to a predetermined level?

Answer: Reorder point system

A reorder point triggers replenishment when stock hits a set minimum.