Question

When large or expensive items are purchased, most organizations make use of a procedure to obtain competitive bids from multiple vendors. The document used to obtain competitive bids is called a(n):

a. purchase requisition
b. purchase order
c. request for quotation
d. authorization to bid

Answer 1

The document used to obtain competitive bids for large or expensive items by organizations is known as a request for quotation (RFQ). This allows for suppliers to participate in a bidding process for specific products or services.

Step-by-step explanation:

When organizations are looking to make large or expensive purchases, they usually seek competitive bids to ensure they are getting the best value for their money. The document used in this process is known as a request for quotation (RFQ). A request for quotation is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. This is different from a purchase requisition, which is an internal document sent within an organization to request that a purchase be made, or a purchase order, which is a document sent from a buyer to a seller with a request to purchase goods or services. Finally, an authorization to bid is not a standard term for this process and does not pertain to obtaining competitive bids.