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

Question

Quizplus · Accepted Answer

Purchasing is typically initiated when a manager authorizes a purchase requisition and forwards it to the purchasing department. This triggers the process of selecting a vendor, negotiating terms, and eventually issuing a purchase order. Option A is incorrect because inventory records may trigger a reorder point, but this does not necessarily initiate purchasing. Option B is incorrect because an order has already been placed in this scenario. Option D is incorrect because a purchase order is the final step in the purchasing process, rather than the initiating step.

When Is Purchasing Initiated