Exam 3: Purchasing Policy and Procedures

Although there is a trend toward less reliance on competitive bids and more on negotiated longer-term agreements,many contracts are still awarded through the competitive bid process.

All of the following are characteristics of effective policies except ____.

Organizations do not need to be cautious about liabilities associated with accepting and using ideas provided by suppliers interested in doing business with a purchaser.

Buyers do not need to consider a supplier's ability to comply with environmental regulations as a condition for selection.

Which of the following is not a best practice for inclusion in any minority supplier development initiative?

All of the following are examples of topics discussed in legal contract procedures except ____.

Which of the following is not an advantage of written and implied policies?

____ refer(s)to the set of purposes,principles,and rules of action that guide an organization.

The organization's policy on contacts and visits to suppliers should address not only purchasing personnel but also other departments or functions that visitor contact suppliers.

Which of the following is not one of the principles that support positive buyer-supplier relationships?

Which of the following is not a disadvantage of written and implied policies?

Which of the following is not an example of typical charge-back costs associated with supplier responsibility for defective material shipments?

Routine items available from many different sources are seldom purchased through competitive bidding.

Although policies are usually documented in writing,unwritten or informal policies can also exist.

It is only the supervisor's responsibility,and not the employee's,to ensure that the purchasing employee is familiar with and follows the procedures covering legal contracts.

A/An ____ is an operating instruction detailing functional duties or tasks.

____ occurs when suppliers are pressured to purchase the buyer's products or services as a condition of securing a purchase contract.

Examples of irregular dealings with suppliers include all of the following except ____.

Policies to define the role of purchasing do all of the following except ____.

Which of the following is not true concerning the purposes of a procedure manual?