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What is the difference between purchase requisition and purchase order

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 14DQ: Explain how lowering inventory produces better products, lower prices, and better responsiveness to...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

: 1. Some organizations prefer using alternative two. What are the advantages of using alternative two instead of the alternative one? Be specific. 2. What is the difference between purchase requisition and purchase order?

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