What does the term "split purchasing" refer to?

The term "split purchasing" specifically refers to the practice of dividing a single procurement into multiple smaller purchases. This is often done to avoid exceeding a certain payment limit that may be set by organizational policies or regulations. By breaking up a larger purchase into smaller transactions, it becomes easier to manage compliance with these limits, ensuring that each individual purchase stays within authorized thresholds. This can also help in managing budget controls effectively and in streamlining approval processes, as smaller amounts may require less oversight than larger expenditures.

Understanding the context of this practice is crucial for cardholders and approving officials, as it highlights the importance of adhering to financial guidelines while still fulfilling purchasing needs. The other options, while related to purchasing strategies, do not accurately capture the specific concept of "split purchasing."