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.