When Is Purchasing Initiated

question 58

Multiple Choice

When is purchasing initiated?

• A) When inventory records indicate that the quantity on hand has reached the average order size
• B) When an order has been placed with the vendor
• C) When a manager authorizes a purchase requisition and forwards it to the purchasing department
• D) When a manager approves a purchase order

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Definitions:

Tax Burden

The total amount of tax levied on an individual or entity, indicating the actual economic impact of taxation on wealth.

Tax Imposed

A financial charge or levy placed by a government on an individual or an entity to fund public expenditures.

Buyer Pays

A pricing term indicating that the purchaser is responsible for the cost of goods, shipping, and any additional expenses associated with the purchase.

Tax Incidence

Describes how the burden of a tax is distributed between buyers and sellers, depending on the relative elasticities of supply and demand.