What Typically Initiates the Acquisitions and Payment Cycle

question 12

Multiple Choice

What typically initiates the acquisitions and payment cycle?

• A) issuance of a purchase requisition or request for purchase of goods or services
• B) issuance of payment to vendor
• C) approval of a new vendor
• D) purchase requisition

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Definitions:

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Actual Production

The quantity of goods or services produced by a firm, industry, or economy within a specific period, factual and not estimated.

Consumer Surplus

The variance between what consumers are ready and capable of spending on a product or service and the actual sum they end up paying.