Question 1

Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.

Accepted Answer

A) True 
 B)False

Question 2

_____ focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service.

Accepted Answer

A) Description by industry standard 
B) Description by brand 
C) Description by specification 
D) Description by performance characteristic 
E) Description by market grade 
A) Description by industry standard 
B) Description by brand 
C) Description by specification 
D) Description by performance characteristic 
E) Description by market grade

Question 3

Historically, most organizations have paid minimal attention to MRO items.

Accepted Answer

A) True 
 B)False

Question 4

A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.

Accepted Answer

A) outstanding order 
B) pending order 
C) blanket purchase order 
D) completed order 
E) order acceptance 
A) outstanding order 
B) pending order 
C) blanket purchase order 
D) completed order 
E) order acceptance

Question 5

_____ include(s) the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.

Accepted Answer

A) Raw materials 
B) Production support items 
C) Semifinished products 
D) Components 
E) Work-in-process inventory 
A) Raw materials 
B) Production support items 
C) Semifinished products 
D) Components 
E) Work-in-process inventory

Question 6

Which of the following is not a feature that separates capital equipment purchases from other purchases?

Accepted Answer

A) Capital equipment purchases do not occur with regular frequency. 
B) Capital equipment investment requires large sums of money. 
C) For accounting purposes, most capital equipment is not depreciable over the life of the item. 
D) Buyers can rarely switch suppliers in the middle of a large-scale project or dispose of capital equipment after delivery because of dissatisfaction. 
E) Capital equipment is highly sensitive to general economic conditions. 
A) Capital equipment purchases do not occur with regular frequency. 
B) Capital equipment investment requires large sums of money. 
C) For accounting purposes, most capital equipment is not depreciable over the life of the item. 
D) Buyers can rarely switch suppliers in the middle of a large-scale project or dispose of capital equipment after delivery because of dissatisfaction. 
E) Capital equipment is highly sensitive to general economic conditions.

Question 7

The way MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple.

Accepted Answer

A) True 
 B)False

Question 8

For standard items, the negotiation process is an efficient method to purchase relatively straightforward requirements.

Accepted Answer

A) True 
 B)False

Question 9

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

Accepted Answer

A) The accounting department gains visibility to future accounts payable obligations. 
B) The requestor can refer to the purchase order number when inquiring into the status of an order. 
C) Receiving has a record of the order to match against the receipt of the material. 
D) Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery. 
E) There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms. 
A) The accounting department gains visibility to future accounts payable obligations. 
B) The requestor can refer to the purchase order number when inquiring into the status of an order. 
C) Receiving has a record of the order to match against the receipt of the material. 
D) Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery. 
E) There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms.

Question 10

In a _____, the price stated in the agreement does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes.

Accepted Answer

A) blanket purchase order 
B) RFQ 
C) cost-based contract 
D) material purchase release 
E) fixed-price contract 
A) blanket purchase order 
B) RFQ 
C) cost-based contract 
D) material purchase release 
E) fixed-price contract

Question 11

In drafting a purchase order, purchasing must include a large number of details regarding policies because it is a legally binding document.

Accepted Answer

A) True 
 B)False

Question 12

When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time.

Accepted Answer

A) True 
 B)False

Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.

_____ focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service.

Historically, most organizations have paid minimal attention to MRO items.

A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.

_____ include(s) the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.

Which of the following is not a feature that separates capital equipment purchases from other purchases?

The way MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple.

For standard items, the negotiation process is an efficient method to purchase relatively straightforward requirements.

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

In a _____, the price stated in the agreement does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes.

In drafting a purchase order, purchasing must include a large number of details regarding policies because it is a legally binding document.

When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time.

Introduction to Purchasing and Supply Chain Management

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 2: The Purchasing Process

Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.

_____ focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service.

Historically, most organizations have paid minimal attention to MRO items.

A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.

_____ include(s) the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.

Which of the following is not a feature that separates capital equipment purchases from other purchases?

The way MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple.

For standard items, the negotiation process is an efficient method to purchase relatively straightforward requirements.

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

In a _____, the price stated in the agreement does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes.

In drafting a purchase order, purchasing must include a large number of details regarding policies because it is a legally binding document.

When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time.

Introduction to Purchasing and Supply Chain Management

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters