01 In a company before issuing a purchase order the sequence of departmental requisition budget check vendor quotation comparison and final approval is fixed. This is an example of which plan?
Answer and explanation
Correct answer: A. Procedure
Explanation: A procedure is a detailed plan that lists the order in which connected activities must be performed. It is useful when an organization wants a task to be completed regularly, carefully, and without skipping an important stage. The order also helps different departments coordinate their work.
Here, the department first sends a requisition, then the budget is checked, vendor quotations are compared, and final approval is obtained before the purchase order is issued. Since these actions have a fixed sequence, the example is a procedure. A policy gives a general guideline, a strategy gives a broad plan, and a rule states what must or must not be done. Thus, option A is correct.