Question 1

Which of the following is not a supplier assessment level?

Accepted Answer

A)  Distribution level. 
B)  Product level. 
C)  Process level. 
D)  Quality assurance system level. 
A)  Distribution level. 
B)  Product level. 
C)  Process level. 
D)  Quality assurance system level.

Question 2

Which of the following best explains 'going rate pricing'?

Accepted Answer

A)  Price is based on competitor prices. 
B)  Price is based on the amount of profit that should be realized. 
C)  Price is based on the importance of the customer to the supplier. 
D)  Fairly low prices for high quality offerings. 
A)  Price is based on competitor prices. 
B)  Price is based on the amount of profit that should be realized. 
C)  Price is based on the importance of the customer to the supplier. 
D)  Fairly low prices for high quality offerings.

Question 3

Which of the following best explains 'supplier satisfaction survey'?

Accepted Answer

A)  Periodically, the buyer invites suppliers through interviews to suggest ideas which may improve business relationships. 
B)  Periodically, the buyer invites other suppliers through a standardized survey to suggest ideas which may improve business relationships. 
C)  Periodically, the buyer invites other buyers through a standardized survey to suggest ideas which may improve business relationships. 
D)  Periodically, the buyer invites suppliers through a standardized survey to suggest ideas which may improve business relationships. 
A)  Periodically, the buyer invites suppliers through interviews to suggest ideas which may improve business relationships. 
B)  Periodically, the buyer invites other suppliers through a standardized survey to suggest ideas which may improve business relationships. 
C)  Periodically, the buyer invites other buyers through a standardized survey to suggest ideas which may improve business relationships. 
D)  Periodically, the buyer invites suppliers through a standardized survey to suggest ideas which may improve business relationships.

Question 4

Which of the following is not a question that should be asked of suppliers?

Accepted Answer

A)  How much corporate tax do you pay? 
B)  Are you a best-in-class company? 
C)  Do you experience learning curve effects in your production or service operational processes? 
D)  What are the costs of non-quality for this particular product? 
A)  How much corporate tax do you pay? 
B)  Are you a best-in-class company? 
C)  Do you experience learning curve effects in your production or service operational processes? 
D)  What are the costs of non-quality for this particular product?

Question 5

Which of the following best explains 'customer of choice'?

Accepted Answer

A)  Suppliers are prepared to invest in the relationship resulting in better product and service allowing the customer company to make a difference in its end-user and customer markets. 
B)  Suppliers are prepared to invest in the relationship resulting in better product and service. 
C)  Suppliers are prepared to invest in the relationship resulting in better product and service allowing the customer company to save money 
D)  Purchasers are prepared to invest in the relationship resulting in better product and service allowing the customer company to make a difference in its end-user and customer markets. 
A)  Suppliers are prepared to invest in the relationship resulting in better product and service allowing the customer company to make a difference in its end-user and customer markets. 
B)  Suppliers are prepared to invest in the relationship resulting in better product and service. 
C)  Suppliers are prepared to invest in the relationship resulting in better product and service allowing the customer company to save money 
D)  Purchasers are prepared to invest in the relationship resulting in better product and service allowing the customer company to make a difference in its end-user and customer markets.

Question 6

Which of the following is not an activity associated with developing suppliers' technical capabilities?

Accepted Answer

A)  Develop a common lexicon. 
B)  Hone core suppliers' innovation capabilities. 
C)  Build suppliers' problem-solving skills. 
D)  Get senior managers involved in solving problems. 
A)  Develop a common lexicon. 
B)  Hone core suppliers' innovation capabilities. 
C)  Build suppliers' problem-solving skills. 
D)  Get senior managers involved in solving problems.

Question 7

Which of the following best explains 'supplier suggestion programme'?

Accepted Answer

A)  The buyer actively solicits ideas for improvement from suppliers. 
B)  The buyer actively solicits ideas for improvement from customers. 
C)  The buyer actively solicits ideas for improvement from competitors. 
D)  The buyer actively solicits ideas for improvement from employees. 
A)  The buyer actively solicits ideas for improvement from suppliers. 
B)  The buyer actively solicits ideas for improvement from customers. 
C)  The buyer actively solicits ideas for improvement from competitors. 
D)  The buyer actively solicits ideas for improvement from employees.

Question 8

Which of the following is not an internal factor influencing the purchase price?

Accepted Answer

A)  Technological. 
B)  Logistics. 
C)  Technical. 
D)  Organizational. 
A)  Technological. 
B)  Logistics. 
C)  Technical. 
D)  Organizational.

Question 9

Which of the following is not an activity associated with supervising suppliers?

Accepted Answer

A)  Send monthly report cards to core suppliers. 
B)  Provide immediate and constant feedback. 
C)  Create compatible production philosophies and systems. 
D)  Get senior managers involved in solving problems. 
A)  Send monthly report cards to core suppliers. 
B)  Provide immediate and constant feedback. 
C)  Create compatible production philosophies and systems. 
D)  Get senior managers involved in solving problems.

Question 10

Which of the following is not a supplier assessment method?

Accepted Answer

A)  Purchaser audits. 
B)  Qualitative assessments. 
C)  Vendor ratings. 
D)  Cost modelling. 
A)  Purchaser audits. 
B)  Qualitative assessments. 
C)  Vendor ratings. 
D)  Cost modelling.

Question 11

Which of the following is not an activity associated with understanding how your suppliers work?

Accepted Answer

A)  Learn about suppliers. 
B)  Go to see how suppliers work. 
C)  Respect suppliers' capabilities. 
D)  Send monthly report cards to core suppliers. 
A)  Learn about suppliers. 
B)  Go to see how suppliers work. 
C)  Respect suppliers' capabilities. 
D)  Send monthly report cards to core suppliers.

Question 12

Which of the following is not an external factor influencing the purchase price?

Accepted Answer

A)  Economic. 
B)  Socio-political. 
C)  Technological. 
D)  Logistics. 
A)  Economic. 
B)  Socio-political. 
C)  Technological. 
D)  Logistics.

Question 13

Which of the following is not a question that should be asked of suppliers?

Accepted Answer

A)  Are you a best-in-class company? 
B)  What is your ratio of direct to indirect costs? 
C)  What is your cost breakdown in terms of overheads, energy, labour and materials? 
D)  How much corporate tax do you pay? 
A)  Are you a best-in-class company? 
B)  What is your ratio of direct to indirect costs? 
C)  What is your cost breakdown in terms of overheads, energy, labour and materials? 
D)  How much corporate tax do you pay?

Question 14

Which of the following is not an action to take supplier performance to a higher level?

Accepted Answer

A)  Supplier suggestion programme. 
B)  Supplier social event. 
C)  Supplier development. 
D)  Supplier satisfaction survey. 
A)  Supplier suggestion programme. 
B)  Supplier social event. 
C)  Supplier development. 
D)  Supplier satisfaction survey.

Question 15

Which of the following best explains market-based pricing?

Accepted Answer

A)  A particular profit margin is added to some costs, including the cost of sales. 
B)  The price of the product is determined by the market and is generated exclusively by market circumstances. 
C)  A fixed percentage mark-up is added to the cost price. 
D)  A 5% profit margin is added to the cost of sales. 
A)  A particular profit margin is added to some costs, including the cost of sales. 
B)  The price of the product is determined by the market and is generated exclusively by market circumstances. 
C)  A fixed percentage mark-up is added to the cost price. 
D)  A 5% profit margin is added to the cost of sales.

Question 16

Which of the following is not a cost driver?

Accepted Answer

A)  Design. 
B)  Facility. 
C)  Acquisitions costs. 
D)  Operations. 
A)  Design. 
B)  Facility. 
C)  Acquisitions costs. 
D)  Operations.

Question 17

Which of the following best explains 'price elasticity'?

Accepted Answer

A)  Discount is based on a special offer to temporarily stimulate sales. 
B)  Discount is based on orders placed out of season for delivery later in the year. 
C)  Discount is based on the how fast the customer pays their bills. 
D)  The extent to which price per unit changes with the volume that is purchased. 
A)  Discount is based on a special offer to temporarily stimulate sales. 
B)  Discount is based on orders placed out of season for delivery later in the year. 
C)  Discount is based on the how fast the customer pays their bills. 
D)  The extent to which price per unit changes with the volume that is purchased.

Question 18

Which of the following is not an activity associated with conducting joint improvement activities with suppliers?

Accepted Answer

A)  Exchange best practices with suppliers. 
B)  Initiate kaizen projects at suppliers' facilities. 
C)  Set up supplier study groups. 
D)  Get senior managers involved in solving problems. 
A)  Exchange best practices with suppliers. 
B)  Initiate kaizen projects at suppliers' facilities. 
C)  Set up supplier study groups. 
D)  Get senior managers involved in solving problems.

Question 19

Which of the following best explains cost-based pricing?

Accepted Answer

A)  A particular profit margin is added to some costs, including the cost of sales. 
B)  A particular profit margin is added to all costs, including the cost of sales. 
C)  A particular profit margin is added to the cost of sales. 
D)  A 5% profit margin is added to the cost of sales. 
A)  A particular profit margin is added to some costs, including the cost of sales. 
B)  A particular profit margin is added to all costs, including the cost of sales. 
C)  A particular profit margin is added to the cost of sales. 
D)  A 5% profit margin is added to the cost of sales.

Which of the following is not a supplier assessment level?

Which of the following best explains 'going rate pricing'?

Which of the following best explains 'supplier satisfaction survey'?

Which of the following is not a question that should be asked of suppliers?

Which of the following best explains 'customer of choice'?

Which of the following is not an activity associated with developing suppliers' technical capabilities?

Which of the following best explains 'supplier suggestion programme'?

Which of the following is not an internal factor influencing the purchase price?

Which of the following is not an activity associated with supervising suppliers?

Which of the following is not a supplier assessment method?

Which of the following is not an activity associated with understanding how your suppliers work?

Which of the following is not an external factor influencing the purchase price?

Which of the following is not a question that should be asked of suppliers?

Which of the following is not an action to take supplier performance to a higher level?

Which of the following best explains market-based pricing?

Which of the following is not a cost driver?

Which of the following best explains 'price elasticity'?

Which of the following is not an activity associated with conducting joint improvement activities with suppliers?

Which of the following best explains cost-based pricing?

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

Performance Measurement and Governance in Purchasing

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 14: Cost Approaches and Techniques

Which of the following is not a supplier assessment level?

Which of the following best explains 'going rate pricing'?

Which of the following best explains 'supplier satisfaction survey'?

Which of the following is not a question that should be asked of suppliers?

Which of the following best explains 'customer of choice'?

Which of the following is not an activity associated with developing suppliers' technical capabilities?

Which of the following best explains 'supplier suggestion programme'?

Which of the following is not an internal factor influencing the purchase price?

Which of the following is not an activity associated with supervising suppliers?

Which of the following is not a supplier assessment method?

Which of the following is not an activity associated with understanding how your suppliers work?

Which of the following is not an external factor influencing the purchase price?

Which of the following is not a question that should be asked of suppliers?

Which of the following is not an action to take supplier performance to a higher level?

Which of the following best explains market-based pricing?

Which of the following is not a cost driver?

Which of the following best explains 'price elasticity'?

Which of the following is not an activity associated with conducting joint improvement activities with suppliers?

Which of the following best explains cost-based pricing?

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

Performance Measurement and Governance in Purchasing

Purchasing, Corporate Social Responsibility and Integrity

Filters