A Materials Requisition Form Is Used to Authorize the Purchase

question 20

True/False

A materials requisition form is used to authorize the purchase of direct materials.A materials requisition form is used to control the physical flow of materials out of inventory and into production,and record the cost of raw materials in the accounting system.

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Definitions:

Return On Equity

An indicator of financial performance determining how effectively a company uses shareholders' funds to generate income, reflecting efficiency in utilizing investor capital.

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.