Which of the Following Best Explains a 'Purchase Order Confirmation

question 41

Multiple Choice

Which of the following best explains a 'Purchase order confirmation'? 

• A) A document that is used by the buyer in which they agree to perform according to the order. 
• B) A document that is used by the supplier in which they agree to perform according to the buyer's purchase order. 
• C) A document that is used by the buyer in which they agree to perform according to the supplier's contract. 
• D) A document that is used by the supplier in which they agree to receive payment according to the buyer's purchase order.

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Definitions:

LIFO Method

Last In, First Out method, an inventory costing method where the last items purchased are the first ones sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.