Deck 5: Procurement 

Question 1

Organizing purchasing as a profit center means that the department would:

A)help other departments generate profits.
B)generate profits but not worry about expenses.
C)manage expenses and generate profit.
D)manage expenses but not generate profits.

Answer 1

C

Question 2

The ________ is the document prepared by the supplier listing the items delivered and their price.

A)invoice
B)purchase requisition
C)purchase specifications
D)purchase order

Answer 2

A

Question 3

Information required on a label under the nutrition labeling law includes:

A)amount of carbohydrate,calcium,copper,lactose.
B)amount of fat,sodium,phosphorus,zinc.
C)amount of cholesterol,sodium,vitamins A and C.
D)amount of calories,fat,vitamins B and D.

Answer 3

C

Question 4

A thermometer is usually placed just inside the door of a refrigerator because:

A)it is less likely to be broken because of supplies being set on it.
B)it minimizes how long the refrigerator door will be left open while checking the temperature.
C)the lighting is better by the door and the temperature can be read more easily.
D)this is the warmest spot in the refrigerator thus the most appropriate place to take the temperature.

Question 5

Pilferage:

A)involves the storage of hazardous materials.
B)is an agreement signed between purchasing agents and sellers to reduce costs.
C)occurs when employees take food products home without permission.
D)is a technique used to electronically scan products on delivery.

Question 6

MATCHING.

A)receive a commission for negotiating between the buyer and the supplier
B)purchase from processing plants,store product,and resell
C)represent small manufacturing company products to buyers
D)sell products to the ultimate buyer
Brokers

Question 7

"Value added" has been defined as:

A)decreasing the price of a food item to increase its perceived value.
B)increasing value of food through manufacturing and processing.
C)increasing the quality of a product compared to its price.
D)increasing the price of a product in relation to its cost to add value to the product.

Question 8

MATCHING.

A)receive a commission for negotiating between the buyer and the supplier
B)purchase from processing plants,store product,and resell
C)represent small manufacturing company products to buyers
D)sell products to the ultimate buyer
Wholesalers

Question 9

A yield grade of "1" stamped on a beef carcass would mean:

A)decreased muscle and increased fat.
B)absence of defects and brightly colored flesh.
C)occasional defects and somewhat dull colored flesh.
D)increased muscle and decreased fat.

Question 10

The document given to the supplier listing the items to be ordered is termed a(n)________.

A)purchase requisition
B)purchasing specification
C)purchase order
D)invoice

Question 11

The Law of ________ defines the buyer's authority to act for the organization.

A)Procurement
B)Warranty
C)Agency
D)Contract

Question 12

Value is the perceived relationship between:

A)quantity and food cost.
B)quantity and quality.
C)quality and specification.
D)quality and price.

Question 13

Requiring that a product labeled "mayonnaise" contains egg is an example of:

A)U)S.Department of Agriculture required ingredient labeling.
B)U)S.Public Health Service Food Code requirements.
C)standard of identity.
D)standard of quality.

Question 14

Irradiation is used to:

A)improve the flavor of meat and poultry products.
B)control foodborne pathogens on food.
C)alter the genetic makeup of food.
D)improve the quality of food items.

Question 15

All of the following are recommended purchasing practices EXCEPT:

A)having the same person responsible for purchasing and receiving.
B)assigning responsibility for receiving to a specific person.
C)weighing items in at time of delivery.
D)comparing quality of delivered product to specifications.

Question 16

The agency responsible for the grading,inspection,and certification of meats is the:

A)U)S.Department of Agriculture.
B)U)S.Public Health Service.
C)U)S.Food and Drug Administration.
D)U)S.Department of Commerce.

Question 17

MATCHING.

A)receive a commission for negotiating between the buyer and the supplier
B)purchase from processing plants,store product,and resell
C)represent small manufacturing company products to buyers
D)sell products to the ultimate buyer
Manufacturer's representatives

Question 18

Specifying that an insulated beverage carafe must maintain temperature for at least 20 minutes is an example of ________ specification.

A)service
B)approved brand
C)technical
D)performance

Question 19

MATCHING.

A)receive a commission for negotiating between the buyer and the supplier
B)purchase from processing plants,store product,and resell
C)represent small manufacturing company products to buyers
D)sell products to the ultimate buyer
Retailers

Question 20

Using the term "lean" to describe the fat content of meat means that the meat has:

A)less than 2 grams of saturated fat and 5 grams of fat per serving.
B)only a trivial amount of fat and cholesterol per serving.
C)less than 3 grams of fat and 40 or less calories per serving.
D)less than 10 grams of fat and 95 milligrams of cholesterol per serving.

Question 21

The fair trade label on coffee indicates that sustainable growing practices were used.

Question 22

To display the USDA Certified Organic label a product must be at least ________ percent organic.

A)95
B)50
C)100
D)80

Question 23

Value analysis is conducted to quantify the components of a product that add value to it.

Question 24

"A" products in the ABC inventory method are those products:

A)whose order cost and holding cost are equal.
B)kept on hand as backup supply to ensure against sudden increase in usage.
C)whose dollar value accounts for 5%-10% of the inventory value.
D)that the managers should monitor and control very closely.

Question 25

Organizing purchasing as a cost center means that the department would generate sufficient profits to cover expenses.

Question 26

If a product is shipped FOB Destination,which of the following is true?

A)The supplier owns the product and pays the freight charges for shipping.
B)The buyer owns the product but the supplier pays the freight charges for shipping.
C)The supplier owns the product,but the buyer pays the freight charges for shipping.
D)The buyer owns the product and pays the freight charges for shipping.

Question 27

A GPO is a form of centralized purchasing that consolidates ordering from all departments within the organization into a single purchasing department.

Question 28

Using FIFO as an inventory control technique means that food items that were placed in the storeroom on January 5 would be used before those that were placed in the storeroom on January 12.

Question 29

Which of the following is an example of an organic growing practice?

A)use of home grown feed for livestock
B)use of sewage sludge-based fertilizers to help assure proper plant growth
C)use of antibiotics to reduce incidence of disease in animals
D)use of ground that has not been exposed to petroleum-based pesticides

Question 30

Storing cabbage and milk next to each other in the same cooler should be avoided since milk may absorb the cabbage odors.

Question 31

Perpetual inventory differs from physical inventory in that:

A)a record of the quantity in stock is always available with physical inventory.
B)food cost per day cannot be calculated with perpetual inventory.
C)purchases and inventory issues are recorded with physical inventory.
D)no visual inspection of the inventory is done to calculate perpetual inventory.

Question 32

The process of supplying food to production units after it has been received is termed ________.

A)receiving
B)inventory control
C)pilferage
D)issuing

Question 33

Safety stock is the amount of food on inventory when reorder is submitted.

Question 34

A fixed bid is guaranteed for the day it is given to a purchasing agent.

Question 35

Certified organic foods can be tracked from the farm through processing to the consumer.

Question 36

Direct issues are products that:

A)go from storage to service without going through production.
B)go from receiving to production without going through storage.
C)go from production to service without going through holding.
D)go from delivery truck to storage without going through receiving.

Question 37

Which of the following is an example of a Good Agricultural Practice (GAP)?

A)providing hand washing facilities for workers
B)use of rainwater runoff for irrigation
C)allowing pets access to growing areas
D)use of animal manure as a fertilizer

Question 38

Taking an actual count of products in storage is termed a ________ inventory.

A)beginning
B)rotating
C)perpetual
D)physical

Question 39

Procurement is located within the transformation component of the foodservice systems model.

Question 40

Which of the following would not be considered a sustainable purchasing practice?

A)purchasing equipment that is Energy Star rated
B)purchasing less toxic cleaning chemicals
C)purchasing individually wrapped and packaged juices
D)purchasing products that contain recycled content

Question 41

The abbreviation,LIFO,stands for ________.

Question 42

Enhancing the quality of life for farmers is part of the definition of sustainable agriculture.

Question 43

________ is the organization who provides certification of chemicals meeting sustainability guidelines.

Question 44

Halal foods are important to those of which religion? ________.

Question 45

Farmers may used petroleum-based fertilizers when growing products to be packaged with the USDA certified organic label.

Question 46

The recommended temperature for storage of food in the dry storage area is ________.

Question 47

Carbon footprint is a measure of one's impact on the environment based on the amount of greenhouse gases (carbon dioxide)generated.