Exam 12: The Purchasing Process

An employee has a(n)______________________________ when he (she)has a financial interest (direct or indirect)in a company with which the employer does business.

At the time that a purchasing orders goods and services,the process is likely to interact with all of the following data stores except the:

Which of the following techniques has the reorder point based on each inventory item's sales rate?

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

The vendor packing slip triggers which process?

Which of the following is a technique for ranking items in a group based on the value,activity,sales,or other relevant metric for the items?

The control plan ______________________________ assumes that there is a segregation of duties between the personnel who create vendor records and those that create and approve POs,record accounts payable,and approve payments.

ABC analysis is a technique for ranking inventory items according to their relative importance.

______________________________ management is the combination of processes and procedures used to ensure the delivery of goods and services to customers at the lowest cost while providing the highest value to the customer.

The inventory master data contains a record of each vendor that is approved for use by the organization.

The receiving department or quality control function should ______________________________ to ensure that the correct goods are received in acceptable condition.

Purchase requisitions are compiled in a(n)______________________________ data store.

Which of the following data stores would you least expect to see in the Purchasing Process - Level 0 Diagram?

The purchase order master data is a compilation of open POs and includes the status of each item on order.

Which of the following managers is most likely to report to the controller?

Who usually authorizes a purchase requisition?

The typical information flows in a purchasing process might include all of the following except:

After the vendor has been selected,the buyer prepares a purchase order.

Notifications that a PO has been prepared and sent to the vendor are sent to the receiving department,the accounts receivable process,and the department or process that requested the purchase.

Below is a narrative of the "Determine Requirements" portion (bubble 1.0)of the purchasing process described in Chapter 12. Narrative Description Bubble 1.1 receives and stores the requests received from the inventory-management process (inventory's purchase requisition)and various departments (purchase requisition-goods and services). At predetermined intervals,bubble 1.2 accesses the accumulated requests held in the purchase requisition data;sorts the requests,perhaps by vendor or product type;and combines that data with the inventory master data to determine what purchases need to be made. Required: From the DFD (TB Figure 12.1)and the narrative description above,explode bubble 1.0 into a lower-level diagram showing the details of that process.