What is the primary advantage of a blanket purchase order when compared to a standard purchase order?
What is the primary advantage of a blanket purchase order when compared to a standard purchase order?
A blanket purchase order is designed to cover multiple transactions over a specified period, reducing the need for creating and processing multiple purchase orders for individual transactions. This significantly lowers the administrative costs associated with procurement, as there is less paperwork and fewer repetitive tasks involved.
A. Lower administrative costs. A blanket purchase order is an agreement between a buyer and a supplier that covers the purchase of multiple goods or services over a period of time. Unlike a standard purchase order, a blanket purchase order does not require a separate purchase order for each individual item or service. This results in lower administrative costs as there is less paperwork and fewer transactions involved in the purchasing process.
A blanket purchase order is an agreement between an organization and a supplier to deliver goods or services at a predetermined price, over a specified time period, usually with a set maximum quantity.
A is correct
The correct answer is A.
The correct answer is A.