ECONOMICS

Detailed explanation-1: -Materials requisition form is used to notify the purchasing agent that additional materials should be ordered. EOQ increases when there is high demand. Purchasing department’s utility bills is part of carrying costs.

Detailed explanation-2: -Purchase Requisition – the form used to notify the purchasing agent that materials are needed. Purchase Order – the purchase requisition that gives the purchasing agent authority to order the materials. Vendor’s Invoice – the invoice from the vendor that should be compared to the purchase order.

Detailed explanation-3: -Answer and Explanation: The form organized by the purchasing agent and sent to the seller to get material is known as purchase order. Hence Option C Purchase order.

Detailed explanation-4: -Definition: A materials requisition form is a source document that the production department uses to request materials for manufacturing process. The production manager usually fills out the materials requisition form and delivers it to the materials or storage department where all of the raw materials are stored.

Detailed explanation-5: -(A) The document authorizing the issuance of materials from the storeroom is a materials requisition. A materials requisition is a request to move materials from the warehouse to the production floor.