Which document authorizes the purchasing department to buy specified materials in specified quantities within a specified time?

Prepare for the APICS CPIM Exam 1. Use flashcards and multiple-choice questions to boost your understanding of planning and inventory management. Equip yourself with hints and thorough explanations to ensure exam success!

Multiple Choice

Which document authorizes the purchasing department to buy specified materials in specified quantities within a specified time?

Explanation:
In procurement, the document that internally authorizes buying is the purchase requisition. It comes from a department needs to the purchasing function and specifies what materials are needed, in what quantity, and by when. Once this internal request is approved, the purchasing department can issue a purchase order to a supplier to actually place the purchase. The purchase order is the outward contract with the supplier, not the internal authorization. The other options don’t fit the authorization role: a work-order or quality cost topic aren’t about authorizing purchases, and quick changeover relates to manufacturing setup, not procurement authorization.

In procurement, the document that internally authorizes buying is the purchase requisition. It comes from a department needs to the purchasing function and specifies what materials are needed, in what quantity, and by when. Once this internal request is approved, the purchasing department can issue a purchase order to a supplier to actually place the purchase. The purchase order is the outward contract with the supplier, not the internal authorization. The other options don’t fit the authorization role: a work-order or quality cost topic aren’t about authorizing purchases, and quick changeover relates to manufacturing setup, not procurement authorization.

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