Which of the Following Best Explains a 'Purchase Order Requisition

question 28

Multiple Choice

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

• A) A document that is used by the buyer in which they agree to perform according to the order. 
• B) A description of internal customer requirements for goods and/or services needed to be obtained from suppliers. 
• C) A description of external customer requirements for goods and/or services needed to be obtained from suppliers, which will serve as the basis for the purchase order. 
• D) A description of internal customer requirements for goods and/or services needed to be obtained from suppliers, which will serve as the basis for the purchase order.

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Definitions:

Activity-based Costing

Activity-based costing is a more precise method of product costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Idle Capacity

The portion of a company's resources or production capability that is not currently being utilized to its full potential.

Activity-based Costing

Activity-based costing allocates overhead costs based on the specific activities that contribute to overhead in producing a product or service.

Processing Batches

Groups of items or units processed together in one operation to improve efficiency, often in manufacturing or data processing contexts.