ECONOMICS

Detailed explanation-1: -Purchase requisition form is prepared by the purchasing agent. 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: -A purchase requisition is a document issued internally by an employee in a company, business, or organization concerning purchasing of goods, services, or raw materials. Purchase requisitions are submitted to the purchasing department, which must be approved for the purchase order to be issued.

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.

Detailed explanation-4: -In the interest of clarity, the business dictionary defines a purchase requisition as a document generated by a user, department or storeroom personnel to notify the purchasing department of items they need to order, highlighting their quantity, price, and timeframe.

Detailed explanation-5: -After completing the requisition form, it is submitted to management for approval. The manager reviews, approves, and then sends the request to the purchasing department. Like the manager, the purchasing department reviews and approves the requisition.