Exam 12: The Purchasing Process

TB Figure 12.13 is the annotated systems flowchart for the purchasing process.TB Figure 12.14 is the related control matrix.Following the control matrix is a description of the first control plan,P-1. Required: Using the format shown for control plan P-1,write descriptions for control plans P-2 through P-6.

Management should exercise the control plan of ______________________________ to ensure that an appropriate supplier has been selected and that the correct goods and services,for the correct amounts,are being purchased.

The purchase requisition is sent from the inventory control department to the ______________________________ department.

Management should exercise the control plan ______________________________ to ensure that a purchase is within an applicable budget and that the purchase is desirable.

The business document that accompanies the purchased inventory from the vendor identifies the shipment and triggers the inventory receiving process is the vendor packing slip.

______________________________ is a technique of analyzing all incremental costs associated with acquiring and carrying particular items of inventory.

At the time that a purchasing process places an order for goods or services,which of the following is typically updated?

EOQ is a technique of analyzing all incremental costs associated with acquiring and carrying particular items of inventory.

Supply chain management:

The item number is the primary key for relational table for vendors.

A(n)______________________________ copy of a document is one in which selected data are blanked out so that persons receiving that copy will not have access to the data.

Goal ______________________________ exists when individual managers' goals are in agreement with overall organizational objectives.

Purchasing personnel use the ______________________________ data to identify potential suppliers that have been approved for use by the organization.

Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department?

Inventory carrying costs include all of the following except:

In an entity-relationship (E-R)diagram for the purchasing process,you would expect that the word yield would appear in the diamond showing the relationship between:

Below is a narrative of the "Order goods and services" portion (bubble 2.0)of the purchasing process described in Chapter 12. Narrative Description The first process involves vendor selection (bubble 2.1).A buyer generally consults the vendor master data to identify potential suppliers that have been approved for use by the organization and then evaluates each prospective vendor for a particular purchase. After the vendor has been selected,the buyer prepares a purchase order (PO).Process bubble 2.2 of depicts the process of preparing a PO.The "purchase order" data flowing out of process 2.2 is sent to the vendor.At the same time,the inventory master data is updated to reflect the goods on order.A record of the purchase is stored on the PO master data,and PO information is distributed to several departments,including the requesting department,the inventory management process,accounts payable process,and receiving. Required: From the DFD (TB Figure 12.3)and the narrative description above,explode bubble 2.0 into a lower-level diagram showing the details of that process.

Before executing a purchase,buyers should compare vendors for favorable prices,______________________________,quality and ______________________________to determine that they have made an optimal choice for the purchase.

The purchasing manager usually performs major buying activities as well as the required administrative duties of running a department.

Goal congruence exists when each individual manager's goals are achieved.