The Overall Objective of the Purchasing Phase in the Expenditure

question 8

Multiple Choice

The overall objective of the purchasing phase in the expenditure cycle is to:

• A)Procure the right goods at the right amount and with the right price
• B)Procure the right goods at the right amount and with the right supplier
• C)Procure the right goods at the right amount,and to receive those goods at the right time
• D)Procure the right goods at the right amount,and to update the accounts payable record

---

Definitions:

Machine Hours

A measure of production output or activity based on the number of hours a machine operates.

Overhead Application Rate

A calculation used to allocate indirect costs to specific production activities or departments based on a predetermined formula.

Machine Hours

A measure of the amount of time a machine is used during a specified period, often used as a basis for allocating machine-related costs to products.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before a period begins based on estimated overhead costs and activity levels.