Exam 3: Purchasing Policy and Procedures

All of the following are examples of elements that must be part of an environmental management system required by the ISO 14000 certification process except _____.

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

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

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

Which of the following is not an advantage of written and implied policies?

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

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.

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

All of the following are characteristics of effective policies except _____.

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

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

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 disadvantage of written and implied policies?​

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

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

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.

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

The organization's policy on contacts and visits to suppliers should address not only purchasing personnel but also other departments or functions that visitor contact suppliers.

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

Routine items available from many different sources are seldom purchased through competitive bidding.