Question 1

Standard costs of production are the basis for operating budgets, product prices, and control of production costs. As these areas develop, __________________ will become part of the ____________ -information system. Standard costs to create the time and place utilities will be calculable.
A) operations and traffic budgeting / technology
B) operations and distribution cost accounting / technology
C) purchasing and distribution cost accounting / accounting technology
D) purchasing and distribution cost accounting / technology
E) operations and warehouse budgeting / accounting

Accepted Answer

C

Question 2

Purchasers and buyers determine which commodities or services are best, choose the suppliers of the product or services, negotiate the lowest price, and award contracts that ensure that the correct amount of the product or service is received at the appropriate time.

Accepted Answer

This statement provides an accurate description of the role and responsibilities of purchasers and buyers in the procurement process. They are responsible for selecting suppliers, negotiating contracts, and ensuring that the right products or services are delivered at the right time and at the best price possible.

Question 3

Supply management is a developing ____________ and an area of management _______________.
A) discipline / responsibility
B) function / specialization
C) division / knowledge
D) position / knowledge
E) discipline / specialization

Accepted Answer

Supply management is a specialized area of management that involves the processes of planning, sourcing, procurement, logistics, and inventory management. It requires a deep understanding of supply chain management, logistics, procurement, and operations management. Therefore, the best choice is E, as supply management is a discipline that requires specialization.

Question 4

or each $___ reduction of material cost, there is a $___ increase in profit. The ratio is ____.
A) 1 / 1 / 1:1
B) 1 / 4 / 1:4
C) 1 / 2 / 1:2
D) 1 / 5 / 1:5
E) 1 / 3 / 1:3

Accepted Answer

The answer of or each $___ reduction of material cost,...

Question 5

The ratios of materials related costs are increasing for all of the following reasons with one exception.
A) inflation and exchange rates
B) increased use of synthetic materials
C) sources of supply
D) complex high-value products

Accepted Answer

Sources of supply is not a reason for increasing ratios of materials related costs.

Question 6

_______________ is the cost to place one order. It is incurred each time an order is placed or part of an order is _____________________.
A) Order cost / back ordered
B) Order cost / scheduled for delivery
C) Finished cost / back ordered
D) Order cost / delivered
E) Total cost / scheduled for delivery

Accepted Answer

Order cost is the cost incurred each time an order is placed or scheduled for delivery.

Question 7

Purchasing managers, buyers, and agents must become ________ (with/on) the services, materials, and products they purchase.
A) familiar
B) efficient
C) experts
D) effective

Accepted Answer

The answer of Purchasing managers, buyers, and agents must become...

Question 8

Whatever the appeal and promise of integrated supply management, achieving integration is a challenge. The decisions of a ___________________________ manager may maximize utilization of production equipment, yet poorly serve the requirements of the ______________ manager.
A) operations-production control (OPC) / financial
B) production-inventory control (PIC) / marketing
C) operations production control (OPC) / plant
D) inventory control / plant
E) plant / marketing

Accepted Answer

The production-inventory control (PIC) manager is responsible for managing inventory levels and ensuring smooth production flow, while the marketing manager is focused on meeting customer demand and promoting the company's products. The decisions made by the PIC manager may not always align with the goals of the marketing manager, making integration a challenge. Option A (OPC/financial) may also be a possibility, but it is less commonly seen in supply chain integration challenges.

Question 9

ll supply management activities have potential for _________________ and hence ________________.
A) increased costs / declining profits
B) cost reduction / decreased waste
C) cost reduction / increased profit
D) expense control / improved net profit
E) costs reduction / improved cost of goods sold

Accepted Answer

Cost reduction is a key focus of supply management activities, and by reducing costs, a company can increase its profit margin. Therefore, the answer is C.

Question 10

.The cost of acquiring, storing, and moving materials is an increasingly large portion of the ____________________.
A) gross profit
B) cost of goods sold
C) net profit
D) direct expenses
E) cost of doing business

Accepted Answer

The cost of acquiring, storing, and moving materials is a direct expense that is included in the cost of goods sold. Therefore, the correct answer is B, cost of goods sold.

Question 11

hanging economic and political environments, emerging technology versus labor, and the changing nature of purchasing as a discipline-must influence the _______ of purchasing and supply management.
A) role
B) systematic process
C) policies
D) rules
E) direction

Accepted Answer

The answer of hanging economic and political environments, emerging technology...

Question 12

.In most firms, functional managers within each area make independent decisions using similar techniques. The objective is to____________________ while ___________________________.
A) provide high-quality customer service / minimizing the cost of producing the service
B) provide high-quality customer service / maximizing the net profit
C) . provide customer service / maximizing gross profit
D) provide standard customer service / minimizing expenses
E) maximize profits / minimizing costs of producing the product

Accepted Answer

The objective is to provide high-quality customer service while minimizing the cost of producing the service. This approach ensures customer satisfaction and loyalty, which are crucial for a firm's success, without unnecessarily inflating operational costs.

Question 13

The decision of the purchasing manager affects not only the purchasing function but other materials functions. It is the objective of ISM to manage the related considerations. Purchasing should consider _______________________ of its decisions.
A) the non-purchasing consequences
B) all the global consequences
C) only the purchasing consequences
D) only the direct consequences
E) none of the consequences

Accepted Answer

Purchasing decisions have a ripple effect on other material functions and even on the overall performance of the company. Therefore, purchasing managers must consider the non-purchasing consequences of their decisions to ensure that they contribute to the overall success of the organization.

Question 14

The costs of satisfactory customer service are only partly identifiable and quantifiable. Our knowledge of the opportunity costs of poor customer service is also incomplete. Yet decisions must be made while recognizing the system wide decision criteria are ________________________.
A) multiple
B) complex
C) conflicting
D) none of the above
E) all of the above

Accepted Answer

The statement suggests that the system wide decision criteria for satisfactory customer service are multiple, complex, and conflicting. Therefore, all of the above options apply.

Question 15

.The purpose of supply management is to support the transformation of raw materials and component parts into _________________.
A) shipped or inventory goods
B) consumer goods
C) high quality products
D) inventory and assets
E) completed goods

Accepted Answer

The answer of .The purpose of supply management is to...

Question 16

Measures of customer service are usually expressed in terms of the _______________ of material. While important, ______________ is only one dimension of customer service.
A) quality / quality
B) abundance / abundance
C) availability / availability
D) price / price
E) quality / value

Accepted Answer

Measures of customer service are often expressed in terms of the availability of material, as it reflects the ability to meet customer demand. Availability is a key aspect, but not the only dimension of customer service.

Question 17

Purchasing managers, buyers, and purchasing agents evaluate suppliers on the basis of _________________________________.
A) price and supplier status
B) service support and availability
C) reliability and selection
D) all of the above
E) "A" and "B" only

Accepted Answer

The answer of Purchasing managers, buyers, and purchasing agents evaluate...

Question 18

The significance of average inventory is that ________________ is a function of average inventory. Inventory is an (a) _______. Working capital is tied up in material rather than an alternative asset. _______________________as well as costs of storing, insuring, and handling are incurred when inventory exists.
A) opportunity cost / liability / Inventory costs
B) inventory cost / liability / Opportunity costs
C) inventory cost / asset / / Opportunity costs
D) inventory cost / asset / Shrinkage
E) opportunity cost / asset / Shrinkage

Accepted Answer

The significance of average inventory is that inventory cost is a function of average inventory. Inventory is an asset. Working capital is tied up in material rather than an alternative asset. Inventory costs, as well as costs of storing, insuring, and handling, are incurred when inventory exists. Therefore, option C is the correct choice.

Question 19

Purchasers buy goods and services for use by their __________________.
A) business associates
B) homes and businesses
C) families
D) business organization
E) employers

Accepted Answer

The answer of Purchasers buy goods and services for use...

Question 20

uyers typically buy items for_________.
A) their employers
B) resale
C) their organizations
D) use in production
E) specific customers

Accepted Answer

Buyers typically purchase items for resale, as they are often involved in the process of acquiring goods to sell to consumers or other businesses.

Quiz 1: Purchasing and Supply Management

Standard costs of production are the basis for operating budgets, product prices, and control of production costs. As these areas develop, ______ will become part of the -information system. Standard costs to create the time and place utilities will be calculable.

Purchasers and buyers determine which commodities or services are best, choose the suppliers of the product or services, negotiate the lowest price, and award contracts that ensure that the correct amount of the product or service is received at the appropriate time.

Supply management is a developing and an area of management ___.

or each $_ reduction of material cost, there is a $_ increase in profit. The ratio is ____.

The ratios of materials related costs are increasing for all of the following reasons with one exception.

_ is the cost to place one order. It is incurred each time an order is placed or part of an order is _______.

Purchasing managers, buyers, and agents must become ________ (with/on) the services, materials, and products they purchase.

Whatever the appeal and promise of integrated supply management, achieving integration is a challenge. The decisions of a _____________ manager may maximize utilization of production equipment, yet poorly serve the requirements of the manager.

ll supply management activities have potential for _ and hence .

.The cost of acquiring, storing, and moving materials is an increasingly large portion of the ____________________.

hanging economic and political environments, emerging technology versus labor, and the changing nature of purchasing as a discipline-must influence the _______ of purchasing and supply management.

.In most firms, functional managers within each area make independent decisions using similar techniques. The objective is to while _______.

The decision of the purchasing manager affects not only the purchasing function but other materials functions. It is the objective of ISM to manage the related considerations. Purchasing should consider _______________________ of its decisions.

The costs of satisfactory customer service are only partly identifiable and quantifiable. Our knowledge of the opportunity costs of poor customer service is also incomplete. Yet decisions must be made while recognizing the system wide decision criteria are ________________________.

.The purpose of supply management is to support the transformation of raw materials and component parts into _________________.

Measures of customer service are usually expressed in terms of the _ of material. While important, is only one dimension of customer service.

Purchasing managers, buyers, and purchasing agents evaluate suppliers on the basis of _________________________________.

The significance of average inventory is that ____________ is a function of average inventory. Inventory is an (a) _. Working capital is tied up in material rather than an alternative asset. _____________________as well as costs of storing, insuring, and handling are incurred when inventory exists.

Purchasers buy goods and services for use by their __________________.

uyers typically buy items for_________.