California IDEX Practice Exam

What document is used to approve the release of funds for furnishing a project?

1. Order confirmation

2. Bill of materials

3. Purchase order

4. Work order

The correct answer is: Purchase order

A purchase order is the correct answer because it is a document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. In the context of approving the release of funds for furnishing a project, a purchase order serves as an official authorization and commitment to pay for the specified items or services. It outlines the details of the transaction and provides a reference for both parties to adhere to. In comparison, the other options: A. An order confirmation is a document acknowledging the receipt of an order but does not serve as an official authorization for the release of funds. B. A bill of materials is a detailed list of items needed to manufacture a product but does not specifically indicate approval for the release of funds for furnishing a project. D. A work order is a document that authorizes certain work to be done but does not necessarily involve the release of funds for purchasing items needed for furnishing a project.