Quotation
A quotation states a proposed price and often terms for goods or services before an order is placed. It helps a customer compare offers and gives a basis for a later order. The customer may accept, reject or negotiate the offer; a subsequent order and fulfilment need separate consideration.
Worked example
A supplier quotes 600 for equipment before the buyer decides whether to order.
Common mistake
Recording a sale simply because a quotation was issued; the quotation alone does not establish that revenue has been earned.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: price quotation