Question 1

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

Accepted Answer

A)  The lack of a definition of purchasing performance. 
B)  The lack of formal objectives and performance standards. 
C)  The time it takes to evaluate purchasing performance. 
D)  The accuracy with which purchasing performance actually can be measured. 
A)  The lack of a definition of purchasing performance. 
B)  The lack of formal objectives and performance standards. 
C)  The time it takes to evaluate purchasing performance. 
D)  The accuracy with which purchasing performance actually can be measured.

Question 2

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

Accepted Answer

A)  Number of on-time deliveries. 
B)  Number of late deliveries. 
C)  Number of incomplete deliveries. 
D)  Number of rush orders per month. 
A)  Number of on-time deliveries. 
B)  Number of late deliveries. 
C)  Number of incomplete deliveries. 
D)  Number of rush orders per month.

Question 3

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

Accepted Answer

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

Question 4

Which of the following best explains 'purchasing's strategic contribution'?

Accepted Answer

A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The building of superior relationships with best-in-class suppliers across the company's value chain. 
A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The building of superior relationships with best-in-class suppliers across the company's value chain.

Question 5

Which of the following best explains 'vendor ranking scores'?

Accepted Answer

A)  Actual vendor rating scores can be translated into vendor ranking scores. 
B)  Actual vendor rating scores can be translated into vendor ranking scores which allow the buyer to focus efforts on those suppliers that need most attention. 
C)  Alphabetical ranking of suppliers. 
D)  Actual vendor rating scores can be translated into vendor ranking scores which can be published. 
A)  Actual vendor rating scores can be translated into vendor ranking scores. 
B)  Actual vendor rating scores can be translated into vendor ranking scores which allow the buyer to focus efforts on those suppliers that need most attention. 
C)  Alphabetical ranking of suppliers. 
D)  Actual vendor rating scores can be translated into vendor ranking scores which can be published.

Question 6

Which of the following best explains 'purchasing efficiency'?

Accepted Answer

A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The longer term consequences of the activity. 
A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The longer term consequences of the activity.

Question 7

Which of the following best explains 'purchasing's involvement in new product development'?

Accepted Answer

A)  Ensuring that goods ordered are delivered according to the company's specifications. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  This relates to purchasing's contribution to product innovation. 
A)  Ensuring that goods ordered are delivered according to the company's specifications. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  This relates to purchasing's contribution to product innovation.

Question 8

Which of the following best explains 'price/cost control'?

Accepted Answer

A)  The continuous monitoring and evaluation of process and price increases as they are charged by suppliers. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  The continuous monitoring of suppliers. 
A)  The continuous monitoring and evaluation of process and price increases as they are charged by suppliers. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  The continuous monitoring of suppliers.

Question 9

Which of the following is a reason for evaluating purchasing performance regularly?

Accepted Answer

A)  To rate the individual buyer. 
B)  To serve the purpose of self-appraisal. 
C)  Fewer rejects of incoming goods. 
D)  Better sourcing decisions. 
A)  To rate the individual buyer. 
B)  To serve the purpose of self-appraisal. 
C)  Fewer rejects of incoming goods. 
D)  Better sourcing decisions.

Question 10

Which view of purchasing is described in the following statement??Management becomes aware that pressing suppliers for low prices has its drawbacks and may lead to sub-optimization.

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 11

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

Accepted Answer

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

Question 12

Which of the following is a reason for evaluating purchasing performance regularly?

Accepted Answer

A)  To rate the individual buyer. 
B)  To lower material prices. 
C)  Fewer rejects of incoming goods. 
D)  Better sourcing decisions. 
A)  To rate the individual buyer. 
B)  To lower material prices. 
C)  Fewer rejects of incoming goods. 
D)  Better sourcing decisions.

Question 13

Which of the following best explains 'purchasing effectiveness'?

Accepted Answer

A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The longer term consequences of the activity. 
A)  The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
B)  This refers to the relationship between planned and actual costs. 
C)  The savings made against budget allocation. 
D)  The longer term consequences of the activity.

Question 14

Which of the following best explains 'purchasing's contribution to total quality control'?

Accepted Answer

A)  Ensuring that goods ordered are delivered according to the company's specifications. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of delivery dates. 
D)  This relates to purchasing's contribution to product innovation. 
A)  Ensuring that goods ordered are delivered according to the company's specifications. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of delivery dates. 
D)  This relates to purchasing's contribution to product innovation.

Question 15

Which of the following is not an example of supplier relationship measures?

Accepted Answer

A)  Price versus targeted price. 
B)  Supplier quality. 
C)  Supplier complaints. 
D)  Supplier invoice processing. 
A)  Price versus targeted price. 
B)  Supplier quality. 
C)  Supplier complaints. 
D)  Supplier invoice processing.

Question 16

Which of the following are potential benefits of critical or key performance indicators?

Accepted Answer

A)  They facilitate discussions on how to improve service levels. 
B)  They improve performance. 
C)  KPIs should be subjective 
D)  KPIs should be not be 'cost-driven'. 
A)  They facilitate discussions on how to improve service levels. 
B)  They improve performance. 
C)  KPIs should be subjective 
D)  KPIs should be not be 'cost-driven'.

Question 17

Which of the following best explains 'price/cost reduction'?

Accepted Answer

A)  The continuous monitoring and evaluation of process and price increases as they are charged by suppliers. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  The continuous monitoring of suppliers. 
A)  The continuous monitoring and evaluation of process and price increases as they are charged by suppliers. 
B)  The continuous monitoring and evaluation of activities initiated to reduce costs. 
C)  The continuous monitoring of quality of supplied orders. 
D)  The continuous monitoring of suppliers.

Question 18

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

Accepted Answer

A)  The number of quality claims to suppliers and amounts involved. 
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 number of quality claims to suppliers and amounts involved. 
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 19

Which of the following is not a key area of measuring purchasing performance?

Accepted Answer

A)  The goals and objectives of the purchasing function. 
B)  The right material, in the right quantity, from the right supplier, at the right time, at the right place and at the right place. 
C)  The savings made against budget allocation. 
D)  Fostering strong and favourable supplier relationships. 
A)  The goals and objectives of the purchasing function. 
B)  The right material, in the right quantity, from the right supplier, at the right time, at the right place and at the right place. 
C)  The savings made against budget allocation. 
D)  Fostering strong and favourable supplier relationships.

Question 20

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.

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 on-time delivery?

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

Which of the following best explains 'purchasing's strategic contribution'?

Which of the following best explains 'vendor ranking scores'?

Which of the following best explains 'purchasing efficiency'?

Which of the following best explains 'purchasing's involvement in new product development'?

Which of the following best explains 'price/cost control'?

Which of the following is a reason for evaluating purchasing performance regularly?

Which view of purchasing is described in the following statement??Management becomes aware that pressing suppliers for low prices has its drawbacks and may lead to sub-optimization.

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

Which of the following is a reason for evaluating purchasing performance regularly?

Which of the following best explains 'purchasing effectiveness'?

Which of the following best explains 'purchasing's contribution to total quality control'?

Which of the following is not an example of supplier relationship measures?

Which of the following are potential benefits of critical or key performance indicators?

Which of the following best explains 'price/cost reduction'?

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

Which of the following is not a key area of measuring purchasing performance?

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

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 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 on-time delivery?

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

Which of the following best explains 'purchasing's strategic contribution'?

Which of the following best explains 'vendor ranking scores'?

Which of the following best explains 'purchasing efficiency'?

Which of the following best explains 'purchasing's involvement in new product development'?

Which of the following best explains 'price/cost control'?

Which of the following is a reason for evaluating purchasing performance regularly?

Which view of purchasing is described in the following statement??Management becomes aware that pressing suppliers for low prices has its drawbacks and may lead to sub-optimization.

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

Which of the following is a reason for evaluating purchasing performance regularly?

Which of the following best explains 'purchasing effectiveness'?

Which of the following best explains 'purchasing's contribution to total quality control'?

Which of the following is not an example of supplier relationship measures?

Which of the following are potential benefits of critical or key performance indicators?

Which of the following best explains 'price/cost reduction'?

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

Which of the following is not a key area of measuring purchasing performance?

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

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