Question

Splitting what would have been an $11000 purchase into two transactions each of which falls under the micro-purchase threshold is: TO3 EO1

Answer 1

Splitting a purchase into multiple transactions under the micro-purchase threshold is a strategy used to avoid exceeding the threshold and triggering additional requirements. By splitting the $11,000 purchase into two transactions below the micro-purchase threshold, the student could potentially avoid more rigorous procurement processes.

Step-by-step explanation:

Splitting a purchase into multiple transactions under the micro-purchase threshold is a strategy used to avoid exceeding the threshold and triggering additional requirements or scrutiny. In this case, the student wants to split an $11,000 purchase into two transactions that fall under the micro-purchase threshold. This threshold may vary depending on the specific rules and regulations in place, but for the sake of example, let's say the micro-purchase threshold is $5,000. By splitting the purchase into two transactions, each below $5,000, the student could avoid any additional restrictions that might be applied to larger purchases.

For example, if the student were to make a single $11,000 purchase, it could be subject to more rigorous procurement processes, such as competitive bidding or contract negotiation. However, by splitting it into two transactions, each below the micro-purchase threshold, these additional requirements may not apply.