a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
What is a purchase order
100
an increase in people that want a good
What is increase in demand
200
Receive and accept orders for goods and services.
What is second step of the revenue process
200
Obtain direct materials
What is second step of the conversion process
200
Select suppliers and order goods/services
What is second step of the expenditure process
200
the buyer gets ownership when the product arrives at the destination
What is FOB Destination
200
decrease in wants of a good
What is decrease in demand
300
Deliver goods and/or services.
What is third step of the revenue process
300
Use labor and other manufacturing resources to make products
What is third step of the conversion process
300
Receive goods
What is third step of the expenditure process
300
the buyer gets ownership when the company ships the product
What is FOB shipping point
300
there is an increase in wants of a product
What is increase in demand
400
Receive payment from customers.
What is fourth step of the revenue process
400
Store finished goods until sold
What is fourth step of the conversion process
400
Pay for goods
What is fourth step of the expenditure process
400
cost that remains constant
What is fixed cost
400
a product gets more expensive
What is decrease in supply
500
Provide customer support.
What is fifth step of the revenue process
500
the normal range of activity for a company.
What is relevant range
500
goal of the expenditure process
What is Receive the highest quality goods/services at the lowest cost.