Mill Company uses a batch processing method to process its sales transactions. Data on Mill's sales transaction tapes are electronically sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances. One of the direct outputs of the creation of these tapes most likely would be a
A) Report showing exceptions and control totals.
B) Printout of the updated inventory records.
C) Report showing overdue accounts receivable.
D) Printout of the sales price master file.

Question

Quizplus · Accepted Answer

Since Mill Company uses a batch processing method, it is likely that the direct output of the creation process of sales transaction tapes would be a report showing exceptions and control totals. This report would provide the necessary information to ensure that edit checks have been accurately performed and that there are no errors or discrepancies in the data. The other options listed, such as a printout of updated inventory records or sales price master file, are not directly related to the processing of sales transactions, and a report showing overdue accounts receivable is not necessarily an output of the batch processing method.

Mill Company Uses a Batch Processing Method to Process Its