Question 1

Which of the following statements explains 'purchasing management'?

Accepted Answer

A)  All activities necessary to manage supplier relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
B)  Relates to all activities necessary to manage customer relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
C)  Relates to all activities necessary to manage staff relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
D)  Relates to all activities necessary to manage financial relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
A)  All activities necessary to manage supplier relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
B)  Relates to all activities necessary to manage customer relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
C)  Relates to all activities necessary to manage staff relationships in such a way that their activities are aligned with the company's overall business strategies and interests. 
D)  Relates to all activities necessary to manage financial relationships in such a way that their activities are aligned with the company's overall business strategies and interests.

Question 2

Which of the following are activities of the purchasing function?

Accepted Answer

A)  Property maintenance 
B)  Production control 
C)  Market research 
D)  Preparing and conducting negotiations with suppliers. 
A)  Property maintenance 
B)  Production control 
C)  Market research 
D)  Preparing and conducting negotiations with suppliers.

Question 3

Which of the following situations explains the 'make to order (MTO)' process?

Accepted Answer

A)  Maintenance repair and operating materials are kept in stock. 
B)  Only raw materials and components are kept in stock. 
C)  Finished products are stockpiled. 
D)  No raw materials or components are kept in stock. 
A)  Maintenance repair and operating materials are kept in stock. 
B)  Only raw materials and components are kept in stock. 
C)  Finished products are stockpiled. 
D)  No raw materials or components are kept in stock.

Question 4

Procurement and supply chain management can contribute to improving the company's bottom line in which of the following ways?

Accepted Answer

A)  Quantitative only. 
B)  Qualitative only. 
C)  Both quantitative and qualitative. 
D)  Neither quantitative nor qualitative. 
A)  Quantitative only. 
B)  Qualitative only. 
C)  Both quantitative and qualitative. 
D)  Neither quantitative nor qualitative.

Question 5

Which of the following is a definition of 'raw materials'?

Accepted Answer

A)  Materials which have undergone no transformation or a minimal transformation, and they serve as the basis materials for a production process. 
B)  Materials which have undergone transformation and they serve as the basis materials for a production process. 
C)  Materials which have undergone no transformation or a minimal transformation, and they serve as the end product of a production process. 
D)  Materials which have undergone transformation or a minimal transformation, and they serve as the end product of a production process. 
A)  Materials which have undergone no transformation or a minimal transformation, and they serve as the basis materials for a production process. 
B)  Materials which have undergone transformation and they serve as the basis materials for a production process. 
C)  Materials which have undergone no transformation or a minimal transformation, and they serve as the end product of a production process. 
D)  Materials which have undergone transformation or a minimal transformation, and they serve as the end product of a production process.

Question 6

Which of the following are 'primary activities'?

Accepted Answer

A)  Human Resources Management 
B)  Inbound logistics. 
C)  Public relations 
D)  Payroll 
A)  Human Resources Management 
B)  Inbound logistics. 
C)  Public relations 
D)  Payroll

Question 7

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

Accepted Answer

A)  Components are manufactured goods which will not undergo additional physical changes, but which will be incorporated into a system with which there is a functional relationship by joining it with other components. 
B)  Components are finished goods which will not undergo additional physical changes before being purchased by consumers 
C)  Components are manufactured goods which will undergo additional physical changes and which will be incorporated into a system. 
D)  Components are finished goods which will undergo additional physical changes and will be incorporated into a system with which there is a functional relationship by joining it with other components. 
A)  Components are manufactured goods which will not undergo additional physical changes, but which will be incorporated into a system with which there is a functional relationship by joining it with other components. 
B)  Components are finished goods which will not undergo additional physical changes before being purchased by consumers 
C)  Components are manufactured goods which will undergo additional physical changes and which will be incorporated into a system. 
D)  Components are finished goods which will undergo additional physical changes and will be incorporated into a system with which there is a functional relationship by joining it with other components.

Question 8

Which of the following is not a definition of 'components'?

Accepted Answer

A)  Components are manufactured goods which will not undergo additional physical changes. 
B)  Components are finished goods which will not undergo additional physical changes before being purchased by consumers 
C)  Components are manufactured goods which will not undergo additional physical changes and which will be incorporated into a system. 
D)  Components are manufactured goods which will not undergo additional physical changes and will be incorporated into a system with which there is a functional relationship by joining it with other components. 
A)  Components are manufactured goods which will not undergo additional physical changes. 
B)  Components are finished goods which will not undergo additional physical changes before being purchased by consumers 
C)  Components are manufactured goods which will not undergo additional physical changes and which will be incorporated into a system. 
D)  Components are manufactured goods which will not undergo additional physical changes and will be incorporated into a system with which there is a functional relationship by joining it with other components.

Question 9

What is 'supply chain management'?

Accepted Answer

A)  The management of all suppliers in such a way that the expectations of the end users of the company are met or surpassed. 
B)  The management of all of goods and services up from the raw materials suppliers, component suppliers and other suppliers in such a way that the expectations of the end users of the company are met or surpassed. Purchasing 
C)  The management of all activities, information, knowledge and financial resources associated with the flow and transformation of goods and services. 
D)  The management of all activities, information, knowledge and financial resources associated with the flow and transformation of goods and services up from the raw materials suppliers, component suppliers and other suppliers in such a way that the expectations of the end users of the company are met or surpassed. 
A)  The management of all suppliers in such a way that the expectations of the end users of the company are met or surpassed. 
B)  The management of all of goods and services up from the raw materials suppliers, component suppliers and other suppliers in such a way that the expectations of the end users of the company are met or surpassed. Purchasing 
C)  The management of all activities, information, knowledge and financial resources associated with the flow and transformation of goods and services. 
D)  The management of all activities, information, knowledge and financial resources associated with the flow and transformation of goods and services up from the raw materials suppliers, component suppliers and other suppliers in such a way that the expectations of the end users of the company are met or surpassed.

Question 10

What is direct purchasing?

Accepted Answer

A)  Purchasing of all materials and products that are used for manufacturing companies' end products. 
B)  Purchasing directly from a retailer. 
C)  Purchasing with cash. 
D)  Outsourcing purchasing. 
A)  Purchasing of all materials and products that are used for manufacturing companies' end products. 
B)  Purchasing directly from a retailer. 
C)  Purchasing with cash. 
D)  Outsourcing purchasing.

Question 11

Which of the following is not a 'support activity'?

Accepted Answer

A)  Procurement 
B)  Human Resources Management. 
C)  Facilities Management 
D)  Production Management 
A)  Procurement 
B)  Human Resources Management. 
C)  Facilities Management 
D)  Production Management

Question 12

Which of the following explains 'supply chain'?

Accepted Answer

A)  A series of companies (links) in which the final stages of production of an economic product take place. 
B)  A series of companies (links) in which the consecutive stages of production of an economic product take place, from primary producer to final consumer. 
C)  A series of companies (links) in which the initial stages of production of an economic product take place. 
D)  A series of companies (links) in which the final stages of production of an economic product take place and the product is distributed to final consumer. 
A)  A series of companies (links) in which the final stages of production of an economic product take place. 
B)  A series of companies (links) in which the consecutive stages of production of an economic product take place, from primary producer to final consumer. 
C)  A series of companies (links) in which the initial stages of production of an economic product take place. 
D)  A series of companies (links) in which the final stages of production of an economic product take place and the product is distributed to final consumer.

Question 13

Which of the following is an explanation of a 'category'?

Accepted Answer

A)  A strategy. 
B)  A group of products which can be substituted for one another by a consumer. 
C)  A plan. 
D)  A procedure. 
A)  A strategy. 
B)  A group of products which can be substituted for one another by a consumer. 
C)  A plan. 
D)  A procedure.

Question 14

Which of the following better explains 'Procurement'?

Accepted Answer

A)  A focus on price versus functionality. 
B)  A focus on the total cost of ownership (TCO). 
C)  Its orientation is commercial. 
D)  its scope is the purchasing process. 
A)  A focus on price versus functionality. 
B)  A focus on the total cost of ownership (TCO). 
C)  Its orientation is commercial. 
D)  its scope is the purchasing process.

Question 15

Which of the following is not an explanation or an example of a 'category'?

Accepted Answer

A)  Cereals. 
B)  Household products. 
C)  Time. 
D)  Gardening products. 
A)  Cereals. 
B)  Household products. 
C)  Time. 
D)  Gardening products.

Question 16

Which term describes products which are not consumed immediately,but whose purchasing value is depreciated during its economic life cycle?

Accepted Answer

A)  Just -in-Time supplies 
B)  Raw materials acquisition 
C)  Equipment 
D)  Investment goods 
A)  Just -in-Time supplies 
B)  Raw materials acquisition 
C)  Equipment 
D)  Investment goods

Question 17

What is Early Supplier Involvement (ESI)?

Accepted Answer

A)  A situation where the supplier is involved by the buyer in an early stage of the new product development process. 
B)  A situation where a new supplier is involved by the buyer in a later stage of the new product development process. 
C)  A situation where the customer is involved in an early stage of the new product development process. 
D)  A situation where the supplier is involved by the buyer in an early stage of a situation where the product will no longer be manufactured. 
A)  A situation where the supplier is involved by the buyer in an early stage of the new product development process. 
B)  A situation where a new supplier is involved by the buyer in a later stage of the new product development process. 
C)  A situation where the customer is involved in an early stage of the new product development process. 
D)  A situation where the supplier is involved by the buyer in an early stage of a situation where the product will no longer be manufactured.

Question 18

Which of the following situations explains 'payment terms'?

Accepted Answer

A)  Payment terms relate to what, how and when the buyer will pay for the products and services delivered by the supplier. 
B)  Payment terms relate to a 12 week period allowed before payment is due for the products and services delivered by the supplier. 
C)  Payment terms relate to when the buyer will pay for the products and services delivered by the supplier. 
D)  Payment terms relate to what and how the buyer will pay for the products and services delivered by the supplier. 
A)  Payment terms relate to what, how and when the buyer will pay for the products and services delivered by the supplier. 
B)  Payment terms relate to a 12 week period allowed before payment is due for the products and services delivered by the supplier. 
C)  Payment terms relate to when the buyer will pay for the products and services delivered by the supplier. 
D)  Payment terms relate to what and how the buyer will pay for the products and services delivered by the supplier.

Question 19

Which of the following explains 'semi-manufactured goods'?

Accepted Answer

A)  These products have already been processed and are ready for sale and distribution. 
B)  These products have already been processed once or more, and they will be processed further at a later stage. 
C)  These products have already been processed once or more, and they will not be processed further at a later stage. 
D)  These products have not yet been processed. 
A)  These products have already been processed and are ready for sale and distribution. 
B)  These products have already been processed once or more, and they will be processed further at a later stage. 
C)  These products have already been processed once or more, and they will not be processed further at a later stage. 
D)  These products have not yet been processed.

Question 20

Which of the following are examples of direct materials?

Accepted Answer

A)  Raw materials 
B)  Semi-manufactured goods 
C)  Half-fabricated components and modules 
D)  All of the above 
A)  Raw materials 
B)  Semi-manufactured goods 
C)  Half-fabricated components and modules 
D)  All of the above

Which of the following statements explains 'purchasing management'?

Which of the following are activities of the purchasing function?

Which of the following situations explains the 'make to order (MTO)' process?

Procurement and supply chain management can contribute to improving the company's bottom line in which of the following ways?

Which of the following is a definition of 'raw materials'?

Which of the following are 'primary activities'?

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

Which of the following is not a definition of 'components'?

What is 'supply chain management'?

What is direct purchasing?

Which of the following is not a 'support activity'?

Which of the following explains 'supply chain'?

Which of the following is an explanation of a 'category'?

Which of the following better explains 'Procurement'?

Which of the following is not an explanation or an example of a 'category'?

Which term describes products which are not consumed immediately,but whose purchasing value is depreciated during its economic life cycle?

What is Early Supplier Involvement (ESI)?

Which of the following situations explains 'payment terms'?

Which of the following explains 'semi-manufactured goods'?

Which of the following are examples of direct materials?

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

Which of the following statements explains 'purchasing management'?

Which of the following are activities of the purchasing function?

Which of the following situations explains the 'make to order (MTO)' process?

Procurement and supply chain management can contribute to improving the company's bottom line in which of the following ways?

Which of the following is a definition of 'raw materials'?

Which of the following are 'primary activities'?

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

Which of the following is not a definition of 'components'?

What is 'supply chain management'?

What is direct purchasing?

Which of the following is not a 'support activity'?

Which of the following explains 'supply chain'?

Which of the following is an explanation of a 'category'?

Which of the following better explains 'Procurement'?

Which of the following is not an explanation or an example of a 'category'?

Which term describes products which are not consumed immediately,but whose purchasing value is depreciated during its economic life cycle?

What is Early Supplier Involvement (ESI)?

Which of the following situations explains 'payment terms'?

Which of the following explains 'semi-manufactured goods'?

Which of the following are examples of direct materials?

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