A Written Purchase Order Is a Contractual Document That Is

question 52

Multiple Choice

A written purchase order is a contractual document that is:

• A)an offer to buy goods or services.
• B)not enforceable if it is not in writing.
• C)a binding agreement between purchaser and vendor.
• D)an acceptance of a vendor's catalog offer to sell.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Variable Cost

A cost that depends on the level of production chosen.