Under federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an):

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Under federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a commitment. This represents a binding agreement to make a purchase in the future and is used to control spending and prevent overcommitment of funds. Obligation refers to the actual placing of an order or entering into a contract, apportionment refers to dividing an appropriation into smaller portions, and allotment refers to the distribution of funds to individual agencies or programs.

Under Federal Government Accounting, Recording the Estimated Amount of Equipment