Which method is used by companies to control P-Card usage?

Limiting the dollar amount for each transaction is a method employed by companies to control P-Card usage effectively. By setting a cap on the transaction limit, organizations can prevent unauthorized or excessive spending, ensuring that employees make purchases that are necessary and within budget. This measure helps maintain financial control and accountability, as it mitigates the risk of misuse and helps monitor the types of items being purchased.

Implementing a dollar limit can also streamline the reconciliation process by making it easier to track expenses and enforce compliance with company policies. It provides a safeguard that encourages employees to prioritize their purchases and choose suppliers carefully, contributing to better overall financial management. This approach is part of a broader set of internal controls that aim to enhance spending oversight while allowing some flexibility for necessary business expenditures.