Question 1

When can an optimum inventory level be maintained?

Accepted Answer

A)  When the sum of the costs of carrying inventory and the costs of stocking out are high 
B)  When the costs of carrying inventory are high and the costs of stocking out are low 
C)  When the costs of carrying inventory are low and the costs of stocking out are high 
D)  When inventory carrying costs and stockout costs are zero 
A)  When the sum of the costs of carrying inventory and the costs of stocking out are high 
B)  When the costs of carrying inventory are high and the costs of stocking out are low 
C)  When the costs of carrying inventory are low and the costs of stocking out are high 
D)  When inventory carrying costs and stockout costs are zero

Question 2

Which of the following is true of the members of quality circles?

Accepted Answer

A)  They are usually very senior-level managers. 
B)  They are generally the supervisors of their respective departments. 
C)  They usually do not get support from top management. 
D)  They receive training in problem identification and communications. 
A)  They are usually very senior-level managers. 
B)  They are generally the supervisors of their respective departments. 
C)  They usually do not get support from top management. 
D)  They receive training in problem identification and communications.

Question 3

Issuing purchase orders creates legal records of purchase.

Accepted Answer

A) True 
 B)False

Question 4

_____ refers to product characteristics and the probability of meeting established standards.

Accepted Answer

A)  Quality 
B)  Stockout 
C)  Variety 
D)  Economic order quantity 
A)  Quality 
B)  Stockout 
C)  Variety 
D)  Economic order quantity

Question 5

Just-in-time delivery increases inventory costs.

Accepted Answer

A) True 
 B)False

Question 6

Materials that have a high cost relative to revenue take up a large share of a small-business owner's time.

Accepted Answer

A) True 
 B)False

Question 7

Businesses that use a single source of supply for a material receive better service from the supplier than those that use many sources of supply.

Accepted Answer

A) True 
 B)False

Question 8

Opportunity costs are profits lost because money is tied up in inventory.

Accepted Answer

A) True 
 B)False

Question 9

Obtaining all items, including goods and services, in the proper form and at the proper place, time, and cost, is the main objective of:

Accepted Answer

A)  promoting. 
B)  marketing. 
C)  purchasing. 
D)  scheduling. 
A)  promoting. 
B)  marketing. 
C)  purchasing. 
D)  scheduling.

Question 10

Scheduling is setting the times and sequences needed to perform specialized activities.

Accepted Answer

A) True 
 B)False

Question 11

Explain why purchasing is important to a small business.

Accepted Answer

A business will need products provided b

Question 12

_____ set predetermined times to ship given quantities of needed products at a given price.

Accepted Answer

A)  Purchase orders 
B)  Standing orders 
C)  Economic order quantities 
D)  Scheduled inventories 
A)  Purchase orders 
B)  Standing orders 
C)  Economic order quantities 
D)  Scheduled inventories

Question 13

Which of the following is true about RFID?

Accepted Answer

A)  It is derived from a language called symbologies. 
B)  It is a method of specific identification transponders. 
C)  The only disadvantage of RFID is that it cannot be read from a distance. 
D)  It is used for checking the quality of a company's inventory. 
A)  It is derived from a language called symbologies. 
B)  It is a method of specific identification transponders. 
C)  The only disadvantage of RFID is that it cannot be read from a distance. 
D)  It is used for checking the quality of a company's inventory.

Question 14

Mark wants to track his inventory from purchase to sale. He wants to automate this process. For this, he should use _____, which are derived from a language called symbologies and are used for specific identification of the objects.

Accepted Answer

A)  bar codes 
B)  radio-frequency identifications 
C)  Six Sigma certifications 
D)  quality circles 
A)  bar codes 
B)  radio-frequency identifications 
C)  Six Sigma certifications 
D)  quality circles

Question 15

What are the current trends in purchasing that are causing problems for small business owners?

Accepted Answer

Two current trends in purchasing that ar

Question 16

Define the term "quality." How is it significant to a small business owner?

Accepted Answer

The term "quality" can have many meaning

Question 17

Which of the following is one of the two current trends in purchasing that are causing considerable problems for small firms?

Accepted Answer

A)  Lack of stockouts 
B)  Supplier-base upsizing 
C)  Weak demand for American products 
D)  Fully integrated production networks 
A)  Lack of stockouts 
B)  Supplier-base upsizing 
C)  Weak demand for American products 
D)  Fully integrated production networks

Question 18

According to the 80-20 rule, approximately 20 percent of a company's income comes from 80 percent of its products.

Accepted Answer

A) True 
 B)False

Question 19

What is the significance of the Federal Acquisition Streamlining Act?

Accepted Answer

A)  It urges government agencies to buy off-the-shelf goods rather than items made to its own specifications. 
B)  It encourages the government to communicate with vendors with detailed paperwork rather than on-line. 
C)  It makes it easier for small companies to bid on non-federal contracts. 
D)  It makes the delivery of materials to the user at the time of production mandatory. 
A)  It urges government agencies to buy off-the-shelf goods rather than items made to its own specifications. 
B)  It encourages the government to communicate with vendors with detailed paperwork rather than on-line. 
C)  It makes it easier for small companies to bid on non-federal contracts. 
D)  It makes the delivery of materials to the user at the time of production mandatory.

Question 20

The economic order quantity is determined by balancing the cost of placing an order with the costs of carrying that inventory in stock.

Accepted Answer

A) True 
 B)False

When can an optimum inventory level be maintained?

Which of the following is true of the members of quality circles?

Issuing purchase orders creates legal records of purchase.

_____ refers to product characteristics and the probability of meeting established standards.

Just-in-time delivery increases inventory costs.

Materials that have a high cost relative to revenue take up a large share of a small-business owner's time.

Businesses that use a single source of supply for a material receive better service from the supplier than those that use many sources of supply.

Opportunity costs are profits lost because money is tied up in inventory.

Obtaining all items, including goods and services, in the proper form and at the proper place, time, and cost, is the main objective of:

Scheduling is setting the times and sequences needed to perform specialized activities.

Explain why purchasing is important to a small business.

_____ set predetermined times to ship given quantities of needed products at a given price.

Which of the following is true about RFID?

Mark wants to track his inventory from purchase to sale. He wants to automate this process. For this, he should use _____, which are derived from a language called symbologies and are used for specific identification of the objects.

What are the current trends in purchasing that are causing problems for small business owners?

Define the term "quality." How is it significant to a small business owner?

Which of the following is one of the two current trends in purchasing that are causing considerable problems for small firms?

According to the 80-20 rule, approximately 20 percent of a company's income comes from 80 percent of its products.

What is the significance of the Federal Acquisition Streamlining Act?

The economic order quantity is determined by balancing the cost of placing an order with the costs of carrying that inventory in stock.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 13: Purchasing, Inventory, and Quality Control

When can an optimum inventory level be maintained?

Which of the following is true of the members of quality circles?

Issuing purchase orders creates legal records of purchase.

_____ refers to product characteristics and the probability of meeting established standards.

Just-in-time delivery increases inventory costs.

Materials that have a high cost relative to revenue take up a large share of a small-business owner's time.

Businesses that use a single source of supply for a material receive better service from the supplier than those that use many sources of supply.

Opportunity costs are profits lost because money is tied up in inventory.

Obtaining all items, including goods and services, in the proper form and at the proper place, time, and cost, is the main objective of:

Scheduling is setting the times and sequences needed to perform specialized activities.

Explain why purchasing is important to a small business.

_____ set predetermined times to ship given quantities of needed products at a given price.

Which of the following is true about RFID?

Mark wants to track his inventory from purchase to sale. He wants to automate this process. For this, he should use _____, which are derived from a language called symbologies and are used for specific identification of the objects.

What are the current trends in purchasing that are causing problems for small business owners?

Define the term "quality." How is it significant to a small business owner?

Which of the following is one of the two current trends in purchasing that are causing considerable problems for small firms?

According to the 80-20 rule, approximately 20 percent of a company's income comes from 80 percent of its products.

What is the significance of the Federal Acquisition Streamlining Act?

The economic order quantity is determined by balancing the cost of placing an order with the costs of carrying that inventory in stock.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters