In decentralized purchasing, who must approve an over-limit order?

In decentralized purchasing, who must approve an over-limit order?

• A. The finance department only
• B. The vendor
• C. The owner or a manager
• D. The purchasing agent

Answer: (C)

In decentralized purchasing, spending authority is delegated to managers or department heads, with set limits for routine orders. When a purchase exceeds that limit, it requires approval from someone with higher responsibility—typically the owner or a manager. This ensures spending stays within budget, maintains accountability, and prevents unauthorized or excessive purchases. The finance department oversees budgets and payments, not the day-to-day approval of over-limit purchases. The vendor cannot authorize internal spending, and the purchasing agent is limited to routine orders within the established threshold.

In decentralized purchasing, spending authority is delegated to managers or department heads, with set limits for routine orders. When a purchase exceeds that limit, it requires approval from someone with higher responsibility—typically the owner or a manager. This ensures spending stays within budget, maintains accountability, and prevents unauthorized or excessive purchases. The finance department oversees budgets and payments, not the day-to-day approval of over-limit purchases. The vendor cannot authorize internal spending, and the purchasing agent is limited to routine orders within the established threshold.