Question 1

Procurement activities are necessary for running,maintaining and managing which of the following activities?

Accepted Answer

A)  Primary activities 
B)  Support activities 
C)  Primary and Support activities 
D)  Future activities 
A)  Primary activities 
B)  Support activities 
C)  Primary and Support activities 
D)  Future activities C

Question 2

Which of the following is a definition of 'quality'?

Accepted Answer

A)  Quality is meeting (internal or external) customer's requirements that have not been formally agreed between a customer and a supplier. 
B)  Quality is meeting (internal customer's requirements that have been formally agreed between an internal customer and a supplier. 
C)  Quality is meeting (internal or external) customer's requirements that have been formally agreed between a customer and a supplier. 
D)  Quality is meeting (internal or external) customer's requirements that have been informally agreed between a customer and a supplier. 
A)  Quality is meeting (internal or external) customer's requirements that have not been formally agreed between a customer and a supplier. 
B)  Quality is meeting (internal customer's requirements that have been formally agreed between an internal customer and a supplier. 
C)  Quality is meeting (internal or external) customer's requirements that have been formally agreed between a customer and a supplier. 
D)  Quality is meeting (internal or external) customer's requirements that have been informally agreed between a customer and a supplier. C

Question 3

What is the DuPont analysis used for?

Accepted Answer

A)  It is used to assess the effect of a 2% purchasing saving on the company's return on investment (ROI). 
B)  Predicting sales growth. 
C)  Analysing stock market trends 
D)  Outsourcing purchasing. 
A)  It is used to assess the effect of a 2% purchasing saving on the company's return on investment (ROI). 
B)  Predicting sales growth. 
C)  Analysing stock market trends 
D)  Outsourcing purchasing. A

Question 4

Which of the following explains the 'Value Chain margin'?

Accepted Answer

A)  Composed of value activities and a margin which is achieved by these activities. The margin represents the value that customers want to pay extra for the company's efforts compared with the costs that were required for these. 
B)  Composed of value activities which can be divided into primary activities and support activities. 
C)  Composed of value activities and a margin which is achieved by these activities. Value activities can be divided into primary activities and support activities 
D)  Composed of value activities and a margin which is achieved by these activities. 
A)  Composed of value activities and a margin which is achieved by these activities. The margin represents the value that customers want to pay extra for the company's efforts compared with the costs that were required for these. 
B)  Composed of value activities which can be divided into primary activities and support activities. 
C)  Composed of value activities and a margin which is achieved by these activities. Value activities can be divided into primary activities and support activities 
D)  Composed of value activities and a margin which is achieved by these activities.

Question 5

Which of the following explains 'support activity'?

Accepted Answer

A)  Those value activities that are required to support the company's primary activities. 
B)  Those value activities that are required to support the company's after sales service activities. 
C)  Those value activities that are required to support the company's manufacturing. 
D)  Those value activities that are required to support the company's distribution activities. 
A)  Those value activities that are required to support the company's primary activities. 
B)  Those value activities that are required to support the company's after sales service activities. 
C)  Those value activities that are required to support the company's manufacturing. 
D)  Those value activities that are required to support the company's distribution activities.

Question 6

Which of the following are not procurement activities?

Accepted Answer

A)  Traffic and transportation 
B)  Inventory control 
C)  Incoming inspection 
D)  Quality control and quality assurance. 
A)  Traffic and transportation 
B)  Inventory control 
C)  Incoming inspection 
D)  Quality control and quality assurance.

Question 7

Which of the following explains 'Total Cost of Ownership (TCO)'?

Accepted Answer

A)  Relates to the initial costs of the product that is purchased. 
B)  Relates to the total costs that the company will incur over the lifetime of the product that is purchased. 
C)  Relates to the marginal costs that the company will incur over the lifetime of the product that is purchased Facilities Management 
D)  Relates to the total costs that the company will incur over the first year of the product that is purchased. 
A)  Relates to the initial costs of the product that is purchased. 
B)  Relates to the total costs that the company will incur over the lifetime of the product that is purchased. 
C)  Relates to the marginal costs that the company will incur over the lifetime of the product that is purchased Facilities Management 
D)  Relates to the total costs that the company will incur over the first year of the product that is purchased.

Question 8

Which of the following activities is part of sourcing strategy?

Accepted Answer

A)  Identifies for a certain category from how many suppliers to buy, what type of relationship to pursue, contract duration, type of contract to negotiate for, and whether to source locally, regionally or globally. 
B)  Environmental scanning 
C)  Portfolio analysis 
D)  Competitor analysis 
A)  Identifies for a certain category from how many suppliers to buy, what type of relationship to pursue, contract duration, type of contract to negotiate for, and whether to source locally, regionally or globally. 
B)  Environmental scanning 
C)  Portfolio analysis 
D)  Competitor analysis

Question 9

Which of the following is an explanation of 'corporate social responsibility (CSR)'?

Accepted Answer

A)  Balancing the interests of customers, employees, the environment and its shareholders, i.e. serving the needs of 'people, planet, profit'. 
B)  Profit maximisation. 
C)  Investing in new machinery. 
D)  Contributing to higher profits. 
A)  Balancing the interests of customers, employees, the environment and its shareholders, i.e. serving the needs of 'people, planet, profit'. 
B)  Profit maximisation. 
C)  Investing in new machinery. 
D)  Contributing to higher profits.

Question 10

Which of the following explain a situation where the contractor designs and provides,in accordance with the client's requirements,plant and/or other Works?

Accepted Answer

A)  Plan and Purchase 
B)  Construct Only 
C)  Design and Construct 
D)  Design Only 
A)  Plan and Purchase 
B)  Construct Only 
C)  Design and Construct 
D)  Design Only

Question 11

Which of the following is not a definition of cross-functional buying teams?

Accepted Answer

A)  Generalists from user departments and buyers are put together in teams to develop specific sourcing and commodity strategies and plans. 
B)  Specialists from user departments and buyers are put together in teams to develop specific sourcing and commodity strategies and plans. 
C)  Specialists from user departments and buyers are put together in teams. 
D)  Specialists from user departments and buyers develop specific sourcing strategies and plans. 
A)  Generalists from user departments and buyers are put together in teams to develop specific sourcing and commodity strategies and plans. 
B)  Specialists from user departments and buyers are put together in teams to develop specific sourcing and commodity strategies and plans. 
C)  Specialists from user departments and buyers are put together in teams. 
D)  Specialists from user departments and buyers develop specific sourcing strategies and plans.

Question 12

Which of the following is a consequence of a 'Request for Quotation (RFQ)'?

Accepted Answer

A)  Suppliers submit general information that may help them to qualify for a potential tender. 
B)  Suppliers are invited to submit a general tender. 
C)  Suppliers are invited to submit general information that will result in them being awarded a supply contract. 
D)  Suppliers are invited to submit a detailed bid which meets the requirements as laid down in the request for quotation against the lowest possible price (identical to request for tender). 
A)  Suppliers submit general information that may help them to qualify for a potential tender. 
B)  Suppliers are invited to submit a general tender. 
C)  Suppliers are invited to submit general information that will result in them being awarded a supply contract. 
D)  Suppliers are invited to submit a detailed bid which meets the requirements as laid down in the request for quotation against the lowest possible price (identical to request for tender).

Question 13

Which of the following explains global sourcing?

Accepted Answer

A)  Products are increasingly sourced from foreign, low-cost countries. 
B)  Products which are purchased to be sold locally. 
C)  Products that are sold outside of the European Community. 
D)  Products sourced from local suppliers. 
A)  Products are increasingly sourced from foreign, low-cost countries. 
B)  Products which are purchased to be sold locally. 
C)  Products that are sold outside of the European Community. 
D)  Products sourced from local suppliers.

Question 14

Which of the following explains the 'Value Chain management'?

Accepted Answer

A)  All stakeholders belonging to the same value chain are challenged to improve the (buying) company's value proposition to staff. 
B)  All stakeholders belonging to the same value chain are challenged to improve efficiency. 
C)  All stakeholders belonging to the same value chain are challenged to reduce costs. 
D)  All stakeholders belonging to the same value chain are challenged to improve the (buying) company's value proposition to its final end customers i.e. consumers. 
A)  All stakeholders belonging to the same value chain are challenged to improve the (buying) company's value proposition to staff. 
B)  All stakeholders belonging to the same value chain are challenged to improve efficiency. 
C)  All stakeholders belonging to the same value chain are challenged to reduce costs. 
D)  All stakeholders belonging to the same value chain are challenged to improve the (buying) company's value proposition to its final end customers i.e. consumers.

Question 15

Which of the following are indirect materials?

Accepted Answer

A)  Transport 
B)  Raw materials 
C)  Services 
D)  Components 
A)  Transport 
B)  Raw materials 
C)  Services 
D)  Components

Question 16

Which of the following are not forms of global sourcing?

Accepted Answer

A)  Low-cost country sourcing 
B)  Products which are sold outside of the European Community 
C)  Regional sourcing 
D)  Offshoring 
A)  Low-cost country sourcing 
B)  Products which are sold outside of the European Community 
C)  Regional sourcing 
D)  Offshoring

Question 17

Which of the following situations explains 'primary activities'?

Accepted Answer

A)  Primary activities are those activities that are required to offer the company's value proposition to its customers. 
B)  Inbound logistics, operations and outbound logistics, 
C)  Marketing and sales and customer service activities. 
D)  All of the above. 
A)  Primary activities are those activities that are required to offer the company's value proposition to its customers. 
B)  Inbound logistics, operations and outbound logistics, 
C)  Marketing and sales and customer service activities. 
D)  All of the above.

Question 18

Which of the following is not a form of expediting?

Accepted Answer

A)  A routine status check. 
B)  An advanced status check. 
C)  Field analysis. 
D)  A credit check. 
A)  A routine status check. 
B)  An advanced status check. 
C)  Field analysis. 
D)  A credit check.

Question 19

Which of the following is a characteristic of a finished product?

Accepted Answer

A)  A component for the manufacturing process. 
B)  Products which are purchased to be sold, after negligible added value. 
C)  Raw materials for the production process. 
D)  Purchased for storage. 
A)  A component for the manufacturing process. 
B)  Products which are purchased to be sold, after negligible added value. 
C)  Raw materials for the production process. 
D)  Purchased for storage.

Question 20

Which of the following influences the leverage effect of procurement?

Accepted Answer

A)  The procurement to sales ratio. 
B)  The capital turnover ratio. 
C)  The procurement to sales ratio and the capital turnover ratio. 
D)  Neither the procurement to sales ratio nor the capital turnover ratio. 
A)  The procurement to sales ratio. 
B)  The capital turnover ratio. 
C)  The procurement to sales ratio and the capital turnover ratio. 
D)  Neither the procurement to sales ratio nor the capital turnover ratio.

Procurement activities are necessary for running,maintaining and managing which of the following activities?

Which of the following is a definition of 'quality'?

What is the DuPont analysis used for?

Which of the following explains the 'Value Chain margin'?

Which of the following explains 'support activity'?

Which of the following are not procurement activities?

Which of the following explains 'Total Cost of Ownership (TCO)'?

Which of the following activities is part of sourcing strategy?

Which of the following is an explanation of 'corporate social responsibility (CSR)'?

Which of the following explain a situation where the contractor designs and provides,in accordance with the client's requirements,plant and/or other Works?

Which of the following is not a definition of cross-functional buying teams?

Which of the following is a consequence of a 'Request for Quotation (RFQ)'?

Which of the following explains global sourcing?

Which of the following explains the 'Value Chain management'?

Which of the following are indirect materials?

Which of the following are not forms of global sourcing?

Which of the following situations explains 'primary activities'?

Which of the following is not a form of expediting?

Which of the following is a characteristic of a finished product?

Which of the following influences the leverage effect of procurement?

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 1: The Role of Purchasing in the Value Chain

Procurement activities are necessary for running,maintaining and managing which of the following activities?

Which of the following is a definition of 'quality'?

What is the DuPont analysis used for?

Which of the following explains the 'Value Chain margin'?

Which of the following explains 'support activity'?

Which of the following are not procurement activities?

Which of the following explains 'Total Cost of Ownership (TCO)'?

Which of the following activities is part of sourcing strategy?

Which of the following is an explanation of 'corporate social responsibility (CSR)'?

Which of the following explain a situation where the contractor designs and provides,in accordance with the client's requirements,plant and/or other Works?

Which of the following is not a definition of cross-functional buying teams?

Which of the following is a consequence of a 'Request for Quotation (RFQ)'?

Which of the following explains global sourcing?

Which of the following explains the 'Value Chain management'?

Which of the following are indirect materials?

Which of the following are not forms of global sourcing?

Which of the following situations explains 'primary activities'?

Which of the following is not a form of expediting?

Which of the following is a characteristic of a finished product?

Which of the following influences the leverage effect of procurement?

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters