Exam 3: Purchasing Policies and Procedures

Although there is a trend toward less reliance on competitive bids and more on negotiated longer-term agreements, many contracts are still awarded through the competitive bid process.

Policies to define the role of purchasing do all of the following except _____.

Once written, policies do not have to be periodically reviewed for clarity and conformance.

Buyers do not need to consider a supplier's ability to comply with environmental regulations as a condition for selection.

It is only the purchasing supervisor's responsibility, and not the employee's, to ensure that the employee is familiar with and follows the procedures covering legal contracts.

Policies defining the role of purchasing often serve as a general or broad policy statement from which more detailed or specific policies evolve.

Which of the following is not a disadvantage of written and implied policies?​

The term _____ refers to the set of purposes, principles, and rules of action that guide an organization.

Which of the following is not true concerning the purposes of a procedure manual?

Which of the following is not an example of typical charge-back costs associated with supplier responsibility for defective material shipments?

All of the following are examples of topics discussed in legal contract procedures except _____.

A procedure is ineffective if it specifies too many steps to carry out or presents unnecessary detail.

_____ refer to standard operating procedures along with any rules and regulations.

Although policies are usually documented in writing, unwritten or informal policies can also exist.

_____ occurs when suppliers are pressured to purchase the buyer's products or services as a condition of securing a purchase contract.

Examples of irregular dealings with suppliers include all of the following except _____.

Which of the following is not a policy defining the conduct of purchasing personnel?

For companies that routinely use or produce hazardous materials, the law requires a policy that outlines in detail the legal requirements and conditions for the handling of toxic waste.

Which of the following is not a best practice for inclusion in any minority supplier development initiative?

Organizations do not need to be cautious about liabilities associated with accepting and using ideas provided by suppliers interested in doing business with a purchaser.