The Pace trade package has this commitment issue: commitment must match approved material scope. Which operation control applies?
Correct Answer
D) purchase-order scope check
Trade purchasing controls should verify scope, approval authority, and substitutions before commitments are made.
Why This Is the Correct Answer
Trade purchasing controls should verify scope, approval authority, and substitutions before commitments are made.
Why the Other Options Are Wrong
Option A: employee handbook receipt
employee handbook receipt skips the written authority, scope, price, notice, or release control needed for trade purchasing control.
Option B: cash receipt deposit
cash receipt deposit skips the written authority, scope, price, notice, or release control needed for trade purchasing control.
Option C: owner occupancy permit
owner occupancy permit skips the written authority, scope, price, notice, or release control needed for trade purchasing control.
Memory Technique
When controls clashes with verify, let the contract speak before Manager Reviews.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Contractor's Manual, Purchasing controls and material commitments; verify the trade cost, production, or field-control rule before answering.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
The North Port contractor is opening business banking controls for deposit procedures for owner checks. Which establishment record should be prepared?
Next Question
A Pompano Beach progress invoice before retainage is $512,800, and the contract retains 5%. What net current billing should be submitted?