CPIM Practice Exam

What is the purpose of a purchase requisition?

1. Obtain vendor quotes

2. Authorize purchasing department for specific materials

3. Finalize contracts with suppliers

4. Create sales orders

The correct answer is: Authorize purchasing department for specific materials

A purchase requisition serves as an internal document requesting the purchasing department to acquire specific materials or services. By submitting a purchase requisition, an employee or department signals the need for certain items, detailing the type and quantity required. This process ensures that needed materials are properly authorized before any procurement activity occurs, aligning with organizational controls and budgets. In this way, the purchase requisition establishes a clear channel of communication between departments and the purchasing function, confirming that the purchase aligns with operational requirements and financial constraints. It is a critical step in maintaining the integrity of the purchasing process, ensuring that all acquisitions are justified and documented appropriately before moving forward with vendor engagement or procurement activities. This distinction underscores the importance of the purchase requisition in guiding the purchasing department's actions while maintaining a systematic approach to acquiring supplies or services needed for business operations.