The purchasing unit receives a copy of the receiving report for comparison with the purchase order and the supplier's invoice.

The purchasing unit receives a copy of the receiving report for comparison with the purchase order and the supplier's invoice.

Answer: True

A purchase requisition for an unusual quantity or for a nonstandard material may be initiated by the factory line supervisor or by the production manager.

A purchase requisition for an unusual quantity or for a nonstandard material may be initiated by the factory line supervisor or by the production manager.

Answer: True

It is customary to check or test the quality of materials received.

It is customary to check or test the quality of materials received.

Answer: True

Purchase orders need not be issued for orders placed by telephone.

Purchase orders need not be issued for orders placed by telephone.

False

Prenumbering purchase orders is a step to achieving internal control of materials.

Prenumbering purchase orders is a step to achieving internal control of materials.

Answer: True

A purchase order should be issued to cover each purchase of supplies.

A purchase order should be issued to cover each purchase of supplies.

Answer: True

The _______ lists all materials needed for a job and the date needed.

The _______ lists all materials needed for a job and the date needed.

Answer: bill of materials

The _______ is responsible for buying materials in correct quantities at the most economical price.

The _______ is responsible for buying materials in correct quantities at the most economical price.

Answer: purchasing agent

The _______ is written authority to the supplier to ship specified materials.

The _______ is written authority to the supplier to ship specified materials.

Answer: purchase order

Raw materials received in the storeroom are recorded on _______ by the storeroom clerk.

Raw materials received in the storeroom are recorded on _______ by the storeroom clerk.

Answer: material ledger card

The daily usage multiplied by the lead time, plus the ______ is equal to the _______ .

The daily usage multiplied by the lead time, plus the ______ is equal to the _______ .

Answer: safety stock, reorder point

Some companies prepare additional copies of the ______ to serve as the receiving report.

Some companies prepare additional copies of the ______ to serve as the receiving report.

Answer: Purchase Order

The storeroom supervisor issues a(n) ______ then the quantity on hand of a standard material reaches the predetermined reorder point.

The storeroom supervisor issues a(n) ______ then the quantity on hand of a standard material reaches the predetermined reorder point.

Answer: Purchase Requisition