Question 1

Which of the following is not a key performance indicator (KPI) for measuring the quality of incoming goods and services?

Accepted Answer

A)  The line reject rate due to inferior quality of components. 
B)  The cost related to quality inspection and auditing of incoming goods. 
C)  This is the percentage of the volume that has been ordered from contracted suppliers versus the total contract spend. 
D)  The number of credit notes to suppliers and the cost related to non-quality deliveries. 
A)  The line reject rate due to inferior quality of components. 
B)  The cost related to quality inspection and auditing of incoming goods. 
C)  This is the percentage of the volume that has been ordered from contracted suppliers versus the total contract spend. 
D)  The number of credit notes to suppliers and the cost related to non-quality deliveries.

Question 2

Which of the following best explains 'purchasing materials budget'?

Accepted Answer

A)  The volume of planned purchases. 
B)  The volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product. 
C)  The total purchasing budget. 
D)  The purchasing budget for each item. 
A)  The volume of planned purchases. 
B)  The volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product. 
C)  The total purchasing budget. 
D)  The purchasing budget for each item.

Question 3

Which of the following is a performance measure related to the view of purchasing function as a strategic business function?

Accepted Answer

A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy. 
A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy.

Question 4

Which of the following is not a potential form of added value of the purchasing department to the firm?

Accepted Answer

A)  Cost reduction. 
B)  Lower material prices. 
C)  Fewer rejects of incoming goods. 
D)  Better motivation. 
A)  Cost reduction. 
B)  Lower material prices. 
C)  Fewer rejects of incoming goods. 
D)  Better motivation.

Question 5

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to ordering?

Accepted Answer

A)  The number of quality claims to suppliers and amounts involved. 
B)  Purchasing administrative lead time. 
C)  Purchasing order backlog per month. 
D)  Number of rush orders per month. 
A)  The number of quality claims to suppliers and amounts involved. 
B)  Purchasing administrative lead time. 
C)  Purchasing order backlog per month. 
D)  Number of rush orders per month.

Question 6

Which view of purchasing is described in the following statement??Management evaluates primarily on parameters such as backlog,number of orders issues and number of complaints.

Accepted Answer

A)  Purchasing as an operational, administrative activity. 
B)  Purchasing as a commercial activity. 
C)  Purchasing as part of integrated logistics 
D)  Purchasing as a strategic business area. 
A)  Purchasing as an operational, administrative activity. 
B)  Purchasing as a commercial activity. 
C)  Purchasing as part of integrated logistics 
D)  Purchasing as a strategic business area.

Question 7

Which of the following is not a benefit of measuring purchasing performance?

Accepted Answer

A)  Better decision-making. 
B)  Better communication. 
C)  Better motivation. 
D)  Better profits. 
A)  Better decision-making. 
B)  Better communication. 
C)  Better motivation. 
D)  Better profits.

Question 8

Which of the following is not an activity associated with purchasing's role in contributing to an efficient incoming flow of purchased materials and services?

Accepted Answer

A)  Control of the timely and accurate handling of purchasing requisitions. 
B)  The control of timely delivery by suppliers. 
C)  The continuous monitoring of payments made. 
D)  The control of quantities delivered. 
A)  Control of the timely and accurate handling of purchasing requisitions. 
B)  The control of timely delivery by suppliers. 
C)  The continuous monitoring of payments made. 
D)  The control of quantities delivered.

Question 9

In car manufacturing,which of the following percentages may account for the purchasing component of the total cost of a car?

Accepted Answer

A)  50%. 
B)  70%. 
C)  80%. 
D)  60%. 
A)  50%. 
B)  70%. 
C)  80%. 
D)  60%.

Question 10

Which of the following is not a problem making it difficult to evaluate purchasing performance?

Accepted Answer

A)  The difference in the scope of purchasing both within and between companies. 
B)  The lack of formal objectives and performance standards. 
C)  The time it takes to evaluate purchasing performance. 
D)  The time it takes to evaluate purchasing performance 
E)  The accuracy with which purchasing
performance actually can be measured. 
A)  The difference in the scope of purchasing both within and between companies. 
B)  The lack of formal objectives and performance standards. 
C)  The time it takes to evaluate purchasing performance. 
D)  The time it takes to evaluate purchasing performance 
E)  The accuracy with which purchasing
performance actually can be measured.

Question 11

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to supply chain efficiency?

Accepted Answer

A)  Number of on-time deliveries. 
B)  Material shortages per month. 
C)  Inventory value per month. 
D)  Number of rush orders. 
A)  Number of on-time deliveries. 
B)  Material shortages per month. 
C)  Inventory value per month. 
D)  Number of rush orders.

Question 12

Which of the following is a performance measure related to the view of purchasing as an operational administrative function?

Accepted Answer

A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy. 
A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy.

Question 13

Which of the following best explains 'cost reductions'?

Accepted Answer

A)  The variance between the historical and the actual purchase price paid per unit. 
B)  The volume per product item which is expected to be saved in the next planning period and the expected price level for that specific product. 
C)  The total purchasing budget savings. 
D)  The purchasing savings budget for each item. 
A)  The variance between the historical and the actual purchase price paid per unit. 
B)  The volume per product item which is expected to be saved in the next planning period and the expected price level for that specific product. 
C)  The total purchasing budget savings. 
D)  The purchasing savings budget for each item.

Question 14

Which of the following is not a level of aggregation for measuring and evaluating the five dimensions of purchasing performance?

Accepted Answer

A)  Per individual supplier level. 
B)  Per individual buyer. 
C)  Per line-item level. 
D)  Customer satisfaction. 
A)  Per individual supplier level. 
B)  Per individual buyer. 
C)  Per line-item level. 
D)  Customer satisfaction.

Question 15

Which of the following best explains the concept of 'purchasing effectiveness'?

Accepted Answer

A)  Purchasing within budget. 
B)  An assessment of costs and outputs achieved. 
C)  The extent to which, by choosing a certain course of action, a previously established goal standard is being pursued. 
D)  The extent to which, by choosing a certain course of action, a previously established goal standard is being met. 
A)  Purchasing within budget. 
B)  An assessment of costs and outputs achieved. 
C)  The extent to which, by choosing a certain course of action, a previously established goal standard is being pursued. 
D)  The extent to which, by choosing a certain course of action, a previously established goal standard is being met.

Question 16

Which of the following best explains 'non-critical deliveries'?

Accepted Answer

A)  Non-critical deliveries are beyond their delivery date and as a result the continuity of the company's business processes is in immediate danger. 
B)  Non-Critical deliveries are on time. 
C)  Non-Critical deliveries are beyond their delivery date. 
D)  Non-critical deliveries are past their delivery date without immediate damage to the company. 
A)  Non-critical deliveries are beyond their delivery date and as a result the continuity of the company's business processes is in immediate danger. 
B)  Non-Critical deliveries are on time. 
C)  Non-Critical deliveries are beyond their delivery date. 
D)  Non-critical deliveries are past their delivery date without immediate damage to the company.

Question 17

Which of the following is not a sub-plan of the purchasing plan?

Accepted Answer

A)  The purchased materials budget. 
B)  The purchased budget indirect materials. 
C)  The investment budget. 
D)  The consumables budget. 
A)  The purchased materials budget. 
B)  The purchased budget indirect materials. 
C)  The investment budget. 
D)  The consumables budget.

Question 18

Which of the following is a performance measure related to the view of purchasing function as part of integrated logistics management?

Accepted Answer

A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy. 
A)  Number of orders. 
B)  Savings. 
C)  Reject rates. 
D)  Make-or-buy.

Question 19

Which of the following is not a dimension on which measurement and evaluation of purchasing activities can be based?

Accepted Answer

A)  A supplier relationship dimension. 
B)  A logistics dimension. 
C)  The right material, in the right quantity, from the right supplier, at the right time, at the right place and at the right place. 
D)  A product/quality dimension. 
A)  A supplier relationship dimension. 
B)  A logistics dimension. 
C)  The right material, in the right quantity, from the right supplier, at the right time, at the right place and at the right place. 
D)  A product/quality dimension.

Question 20

Which of the following is not an example of a major resource used to achieve the goals and objectives of the purchasing function?

Accepted Answer

A)  Purchasing staff. 
B)  Purchasing procedures and guidelines. 
C)  Purchasing management. 
D)  Customers. 
A)  Purchasing staff. 
B)  Purchasing procedures and guidelines. 
C)  Purchasing management. 
D)  Customers.

Which of the following is not a key performance indicator (KPI) for measuring the quality of incoming goods and services?

Which of the following best explains 'purchasing materials budget'?

Which of the following is a performance measure related to the view of purchasing function as a strategic business function?

Which of the following is not a potential form of added value of the purchasing department to the firm?

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to ordering?

Which view of purchasing is described in the following statement??Management evaluates primarily on parameters such as backlog,number of orders issues and number of complaints.

Which of the following is not a benefit of measuring purchasing performance?

Which of the following is not an activity associated with purchasing's role in contributing to an efficient incoming flow of purchased materials and services?

In car manufacturing,which of the following percentages may account for the purchasing component of the total cost of a car?

Which of the following is not a problem making it difficult to evaluate purchasing performance?

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to supply chain efficiency?

Which of the following is a performance measure related to the view of purchasing as an operational administrative function?

Which of the following best explains 'cost reductions'?

Which of the following is not a level of aggregation for measuring and evaluating the five dimensions of purchasing performance?

Which of the following best explains the concept of 'purchasing effectiveness'?

Which of the following best explains 'non-critical deliveries'?

Which of the following is not a sub-plan of the purchasing plan?

Which of the following is a performance measure related to the view of purchasing function as part of integrated logistics management?

Which of the following is not a dimension on which measurement and evaluation of purchasing activities can be based?

Which of the following is not an example of a major resource used to achieve the goals and objectives of the purchasing function?

The Role of Purchasing in the Value Chain

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

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 13: Performance Measurement and Governance in Purchasing

Which of the following is not a key performance indicator (KPI) for measuring the quality of incoming goods and services?

Which of the following best explains 'purchasing materials budget'?

Which of the following is a performance measure related to the view of purchasing function as a strategic business function?

Which of the following is not a potential form of added value of the purchasing department to the firm?

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to ordering?

Which view of purchasing is described in the following statement??Management evaluates primarily on parameters such as backlog,number of orders issues and number of complaints.

Which of the following is not a benefit of measuring purchasing performance?

Which of the following is not an activity associated with purchasing's role in contributing to an efficient incoming flow of purchased materials and services?

In car manufacturing,which of the following percentages may account for the purchasing component of the total cost of a car?

Which of the following is not a problem making it difficult to evaluate purchasing performance?

Which of the following is not a key performance indicator (KPI) for assessing purchasing logistics performance in relation to supply chain efficiency?

Which of the following is a performance measure related to the view of purchasing as an operational administrative function?

Which of the following best explains 'cost reductions'?

Which of the following is not a level of aggregation for measuring and evaluating the five dimensions of purchasing performance?

Which of the following best explains the concept of 'purchasing effectiveness'?

Which of the following best explains 'non-critical deliveries'?

Which of the following is not a sub-plan of the purchasing plan?

Which of the following is a performance measure related to the view of purchasing function as part of integrated logistics management?

Which of the following is not a dimension on which measurement and evaluation of purchasing activities can be based?

Which of the following is not an example of a major resource used to achieve the goals and objectives of the purchasing function?

The Role of Purchasing in the Value Chain

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

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters