Question 1

Which of the following is not one of the conditions under which negotiation is effective?

Accepted Answer

A)  When the purchase requires agreement about a wide range of performance factors. 
B)  When the buyer requires early supplier involvement. 
C)  When the specifications or requirements are clear to the seller. 
D)  When the supplier cannot determine risks and costs. 
E)  When the supplier requires a long period of time to develop and produce the item. 
A)  When the purchase requires agreement about a wide range of performance factors. 
B)  When the buyer requires early supplier involvement. 
C)  When the specifications or requirements are clear to the seller. 
D)  When the supplier cannot determine risks and costs. 
E)  When the supplier requires a long period of time to develop and produce the item.

Question 2

The buyer may assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier.

Accepted Answer

A) True 
 B)False

Question 3

When marketing wants to purchase an advertising media campaign,the ____ should specify the work that is to be completed,when it is needed,and what type of service provider is required,

Accepted Answer

A)  reorder point 
B)  acknowledgement 
C)  traveling purchase requisition 
D)  statement of work 
E)  forecast 
A)  reorder point 
B)  acknowledgement 
C)  traveling purchase requisition 
D)  statement of work 
E)  forecast

Question 4

____ involves a process of unbundling the price paid and other components of price over the life cycle of a product or service,to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.

Accepted Answer

A)  Cost management 
B)  Procure-to-pay 
C)  Supplier relationship management 
D)  Category management 
E)  Spend management 
A)  Cost management 
B)  Procure-to-pay 
C)  Supplier relationship management 
D)  Category management 
E)  Spend management

Question 5

All of the following are benefits of electronically generating and transmitting purchasing-related documents except ____.

Accepted Answer

A)  a reduction in the need to ensure higher levels of quality from suppliers 
B)  a virtual elimination of paperwork and paperwork handling 
C)  improved communication both within the company and with suppliers 
D)  a reduction in errors 
E)  a reduction in the time spent in by purchasing personnel on processing orders and invoices and more time spent on strategic value-adding purchasing activities 
A)  a reduction in the need to ensure higher levels of quality from suppliers 
B)  a virtual elimination of paperwork and paperwork handling 
C)  improved communication both within the company and with suppliers 
D)  a reduction in errors 
E)  a reduction in the time spent in by purchasing personnel on processing orders and invoices and more time spent on strategic value-adding purchasing activities

Question 6

Purchasing can only negatively affect the long-term growth,revenue,and operating outcomes and plans of internal customers.

Accepted Answer

A) True 
 B)False

Question 7

In the ____ approach,purchasing must work with the end user to quickly identify a supplier to provide products on short notice at the lowest possible cost with an acceptable level of quality and delivery time.

Accepted Answer

A)  spot buy 
B)  long term agreement 
C)  P2P 
D)  e-procurement 
E)  None of these choices. 
A)  spot buy 
B)  long term agreement 
C)  P2P 
D)  e-procurement 
E)  None of these choices.

Question 8

____ include(s)the materials required to pack and ship final products,such as pallets,boxes,master shipping containers,tape,bags,wrapping,inserts,and other packaging material.

Accepted Answer

A)  Raw materials 
B)  Production support items 
C)  Semifinished products 
D)  Components 
E)  Work-in-process inventory 
A)  Raw materials 
B)  Production support items 
C)  Semifinished products 
D)  Components 
E)  Work-in-process inventory

Question 9

While similar in concept,blanket purchase orders are typically used more often for ____ purchases,while longer-term purchase agreements are used for ____ purchases.

Accepted Answer

A)  unique....routine 
B)  lower-value....higher-value 
C)  complex....simple 
D)  higher-value....lower-value 
E)  There are no differences in the types of products or amounts purchased in either method. 
A)  unique....routine 
B)  lower-value....higher-value 
C)  complex....simple 
D)  higher-value....lower-value 
E)  There are no differences in the types of products or amounts purchased in either method.

Question 10

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

Accepted Answer

A)  The accounting department gains visibility to future accounts payable obligations. 
B)  The requestor can refer to the purchase order number when inquiring into the status of an order. 
C)  Receiving has a record of the order to match against the receipt of the material. 
D)  Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery. 
E)  There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms. 
A)  The accounting department gains visibility to future accounts payable obligations. 
B)  The requestor can refer to the purchase order number when inquiring into the status of an order. 
C)  Receiving has a record of the order to match against the receipt of the material. 
D)  Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery. 
E)  There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms.

Question 11

In a ____,the price stated in the agreement does not change,regardless of fluctuations in general overall economic conditions,industry competition,levels of supply,market prices,or other environmental changes.

Accepted Answer

A)  blanket purchase order 
B)  RFQ 
C)  cost-based contract 
D)  material purchase release 
E)  fixed-price contract 
A)  blanket purchase order 
B)  RFQ 
C)  cost-based contract 
D)  material purchase release 
E)  fixed-price contract

Question 12

If the requested item is complex or requires an untested or new production process,purchasing can include additional information or attachments on its RFQ to assist the supplier,which may include detailed blueprints,samples,or technical drawings.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not one of the generally accepted ways that internal customers should communicate their needs to purchasing?

Accepted Answer

A)  Purchase requisitions from internal users. 
B)  Chance meeting in the company cafeteria. 
C)  Forecasts and customer orders. 
D)  Material requirements identified during new product development. 
E)  Routine reordering systems. 
A)  Purchase requisitions from internal users. 
B)  Chance meeting in the company cafeteria. 
C)  Forecasts and customer orders. 
D)  Material requirements identified during new product development. 
E)  Routine reordering systems.

Question 14

The ____ is used to identify user requirements,evaluate the user needs effectively and efficiently,identify suppliers who can meet that need,develop agreements with those suppliers,develop the ordering mechanism,ensure payment occurs promptly,ascertain that the need was effectively met,and drive continuous improvement.

Accepted Answer

A)  demand management process 
B)  backdoor buying process 
C)  materials budgeting process 
D)  forecasting process 
E)  purchasing process 
A)  demand management process 
B)  backdoor buying process 
C)  materials budgeting process 
D)  forecasting process 
E)  purchasing process

Question 15

The ____,which the supplier provides,details the contents of a shipment.

Accepted Answer

A)  material packing slip 
B)  purchase requisition 
C)  bill of lading 
D)  electronic funds transfer 
E)  request for quotation 
A)  material packing slip 
B)  purchase requisition 
C)  bill of lading 
D)  electronic funds transfer 
E)  request for quotation

Question 16

A ____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.

Accepted Answer

A)  reorder point system 
B)  stock check 
C)  just-in-time system 
D)  forecasting system 
E)  p-card system 
A)  reorder point system 
B)  stock check 
C)  just-in-time system 
D)  forecasting system 
E)  p-card system

Question 17

The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers.

Accepted Answer

A) True 
 B)False

Question 18

When creating a forecast for a needed product or service,internal customers may not always be able to express exactly what it is they will need at a single point in time.

Accepted Answer

A) True 
 B)False

Question 19

Enterprises are relying increasingly on external suppliers to provide only materials and products,not information technology,services,and design activities.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are required elements in a purchase requisition except ____.

Accepted Answer

A)  quantity and date required 
B)  estimated unit cost 
C)  operating account to be charged 
D)  authorized signature 
E)  identification and approval of a supplier by the end user 
A)  quantity and date required 
B)  estimated unit cost 
C)  operating account to be charged 
D)  authorized signature 
E)  identification and approval of a supplier by the end user

Which of the following is not one of the conditions under which negotiation is effective?

The buyer may assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier.

When marketing wants to purchase an advertising media campaign,the ____ should specify the work that is to be completed,when it is needed,and what type of service provider is required,

____ involves a process of unbundling the price paid and other components of price over the life cycle of a product or service,to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.

All of the following are benefits of electronically generating and transmitting purchasing-related documents except ____.

Purchasing can only negatively affect the long-term growth,revenue,and operating outcomes and plans of internal customers.

In the ____ approach,purchasing must work with the end user to quickly identify a supplier to provide products on short notice at the lowest possible cost with an acceptable level of quality and delivery time.

____ include(s)the materials required to pack and ship final products,such as pallets,boxes,master shipping containers,tape,bags,wrapping,inserts,and other packaging material.

While similar in concept,blanket purchase orders are typically used more often for purchases,while longer-term purchase agreements are used for purchases.

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

In a ____,the price stated in the agreement does not change,regardless of fluctuations in general overall economic conditions,industry competition,levels of supply,market prices,or other environmental changes.

If the requested item is complex or requires an untested or new production process,purchasing can include additional information or attachments on its RFQ to assist the supplier,which may include detailed blueprints,samples,or technical drawings.

Which of the following is not one of the generally accepted ways that internal customers should communicate their needs to purchasing?

The ____,which the supplier provides,details the contents of a shipment.

A ____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.

The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers.

When creating a forecast for a needed product or service,internal customers may not always be able to express exactly what it is they will need at a single point in time.

Enterprises are relying increasingly on external suppliers to provide only materials and products,not information technology,services,and design activities.

All of the following are required elements in a purchase requisition except ____.

Introduction to Purchasing and Supply Chain Management

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 2: The Purchasing Process

Which of the following is not one of the conditions under which negotiation is effective?

The buyer may assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier.

When marketing wants to purchase an advertising media campaign,the ____ should specify the work that is to be completed,when it is needed,and what type of service provider is required,

____ involves a process of unbundling the price paid and other components of price over the life cycle of a product or service,to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.

All of the following are benefits of electronically generating and transmitting purchasing-related documents except ____.

Purchasing can only negatively affect the long-term growth,revenue,and operating outcomes and plans of internal customers.

In the ____ approach,purchasing must work with the end user to quickly identify a supplier to provide products on short notice at the lowest possible cost with an acceptable level of quality and delivery time.

____ include(s)the materials required to pack and ship final products,such as pallets,boxes,master shipping containers,tape,bags,wrapping,inserts,and other packaging material.

While similar in concept,blanket purchase orders are typically used more often for ____ purchases,while longer-term purchase agreements are used for ____ purchases.

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

In a ____,the price stated in the agreement does not change,regardless of fluctuations in general overall economic conditions,industry competition,levels of supply,market prices,or other environmental changes.

If the requested item is complex or requires an untested or new production process,purchasing can include additional information or attachments on its RFQ to assist the supplier,which may include detailed blueprints,samples,or technical drawings.

Which of the following is not one of the generally accepted ways that internal customers should communicate their needs to purchasing?

The ____,which the supplier provides,details the contents of a shipment.

A ____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.

The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers.

When creating a forecast for a needed product or service,internal customers may not always be able to express exactly what it is they will need at a single point in time.

Enterprises are relying increasingly on external suppliers to provide only materials and products,not information technology,services,and design activities.

All of the following are required elements in a purchase requisition except ____.

Introduction to Purchasing and Supply Chain Management

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

While similar in concept,blanket purchase orders are typically used more often for purchases,while longer-term purchase agreements are used for purchases.