All of the Following Are Required Elements in a Purchase

question 10

Multiple Choice

All of the following are required elements in a purchase requisition except _____.

• A)quantity and date required
• B)estimated unit cost
• C)operating account to be charged
• D)authorized signature
• E)identification and approval of a supplier by the end user

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Definitions:

Break-Even

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor incurring a loss.

Variable Expense

Costs that change in proportion to the activity or volume of a business, such as raw materials and sales commissions.

Fixed Expense

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

Margin of Safety

This is a financial metric that measures the difference between actual sales and the break-even point, indicating how much sales can decline before a business incurs a loss.