Exam 2: The Purchasing Process

Purchasing's right to evaluate and select suppliers means that sales representatives are not allowed to talk with non-purchasing personnel.

A key characteristic of a/an _____ is a lack of processing by the supplier into a newly formed product.

The purchasing cycle begins with the _____.

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

Responsibility for concealed damage is often simple and easy to detect.

It is a common and preferred current practice for suppliers to arrange shipment to a purchaser and simply include the transportation cost as part of the purchase cost.

Suppliers are more often being paid through _____, which is the automatic transfer of payment from the buyer's bank account to the supplier's bank account.

All of the following are objectives of a world-class purchasing organization except _____.

In a _____, the supplier is reimbursed all of their actual costs plus some agreed on operational margin and overhead amount.

Which of the following is not one of the objectives in supplier performance management?

_____ is the process of collecting historical data by commodity, relative to demand from the lines of business, with the exception of personnel expenses, occupancy, and corporate spend.

Capital equipment purchasing involves buying assets intended for use less than one year.

For standard items, the negotiation process is an efficient method to purchase relatively straightforward requirements.

Historically, most organizations have paid minimal attention to MRO items.

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

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 might include detailed blueprints, samples, or technical drawings.

_____ involves unbundling the price paid and understanding the total cost of ownership 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 conditions under which competitive bidding is effective except _____.

[A/An] _____ involves a communications standard that supports inter-organizational electronic exchange of common business documents and information.