ECONOMICS

Detailed explanation-1: -The receiving report shows the supplier, the date of receipt, materials received, and the number of the purchase order that identifies the shipment. Purchase order describes the materials ordered, stating prices and terms. Cost accountant is involved in the in the physical control of materials.

Detailed explanation-2: -A purchase order is a legally binding document drafted by an organization when placing an order with its suppliers. Submitting a purchase order confirms the buyer’s intent to purchase a certain quantity of goods or services for the negotiated amount from the supplier.

Detailed explanation-3: -Obtain goods and services at the lowest cost.