Final answer:
A business uses purchase orders for control, communication, and budgeting purposes.
Step-by-step explanation:
A business uses purchase orders for several reasons:
- Control and Record-Keeping: Purchase orders help businesses keep track of their purchases, ensuring that they receive the right products and quantities. It also serves as a proof of purchase, facilitating record-keeping and accounting.
- Communication and Documentation: Purchase orders provide a clear and formal means of communication between the business and its suppliers. They specify the details of the order, including the product, quantity, price, delivery date, and any other relevant terms and conditions.
- Budgeting and Planning: Purchase orders help businesses plan and budget for their purchases. By creating purchase orders in advance, businesses can estimate their expenses, negotiate better deals with suppliers, and ensure they have the necessary funds available.