Elena Cristina Ardines Gutiérrez 1877476 5Ci

Chapter 2 Quiz
1.-They have historically been the preferred method for making the purchasing process
more efficient and user friendly
a) Purchase orders
b) Purchasing process
c) Blanket orders
d) Invoice

2.-It allows the buyer to terminate the contract in the event of persistently poor quality,
delivery problems, and so on
a) Escape clause
b) Request for quotation
c) Just-in-time
d) Blackflush accounting

3.-What do Organizations often use orders as a means to provide visibility to the

supplier about forecasted material requirements?
a) Material release
b) Purchasing materials
c) Three line bottom
d) Benchmarking

4.- What is typically required if the size of the purchase exceeds a predetermined
monetary value?
a) A purchase order
b) A refund
c) Contract
d) Request for quotation

5.- After a contract has been signed, who is the responsible to ensure that all of the
terms and conditions of the agreement are fulfilled?
Elena Cristina Ardines Gutiérrez 1877476 5Ci

a) The CEO
b) The purchasing manager
c) Accountant
d) Graphic designer

6.- What is the process used to identify user requirements, evaluate the need effectively
and efficiently, identify suppliers, ensure payment occurs promptly, ascertain that the
need was effectively met, and drive continuous improvement?
a) Management process
b) Distribution
c) Purchasing process
d) Sales process

7.- Failing to respond to the needs of internal customers will diminish the confidence
these users have in purchasing, and they may try to negotiate contracts themselves.
a) Bad purchasing
b) Internal buying
c) Customer’s confidence
d) Backdoor Buying

8.- How is called the most important objectives of the purchasing function like the
selection, development, and maintenance of supply?
a) Purchasing process
b) Internal supply selection
c) Supply all the internal needs
d) Supply base management

9.- It is the authority to review material specifications is also within purchasing’s span of
control, although engineering sometimes disputes this right?
a) Review Specifications
b) Auditory
c) Span of control
Elena Cristina Ardines Gutiérrez 1877476 5Ci

d) Functional Stakeholders

10.- In private industry, competitive bidding involves a request for bids from suppliers
with whom the buyer is willing to do business. This process is typically initiated when a
form is sent to the supplier.
a) Request for benchmarking
b) Purchasing requisiton
c) Requests for quotations
d) Invoice

11.- . In certain companies, Request for proposal (RFP) and __________________are

synonyms.
a) Request for bidding (RFB)
b) Request for quotation (RFQ)
c) Request for material (RFM)
d) Request for brainstorm (RFB)

12.- . It focuses attention on the outcomes the customer wants, not on the precise
configuration of the product or service. The assumption is that the supplier will know the
best way to meet the customer’s needs.
a) Description by specification
b) Description by market grade or industry standard
c) Description by performance characteristics
d) Description by brand

13.- . Might be the best choice for standard items, where the requirements are well
understood and there is common agreement between supply chain partners about what
certain terms mean:
a) Description by specification
b) Description by market grade or industry standard
c) Description by performance characteristics
d) Description by brand
Elena Cristina Ardines Gutiérrez 1877476 5Ci

14.- How are the organizations improving the purchasing process?

a) By increasing the time and effort dedicated to it.
b) By searching for suppliers with lower cost
c) Reducing time and effort associated with it.
d) Implementing a bigger purchasing department

15.- What is a benefit of using cards in the purchasing process?

a) Reduce total transaction time
b) Increase transaction cost
c) Increase total transaction cost
d) Lower response to user needs

16.- It is the type of purchase that does not occurs frequently, and the buying assets are
depreciable.

a) Raw material
b) Services
c) Production support items
d) Capital equipment

16.- What contracts are appropriate for situations in which there is a risk that a large
contingency fee might be included using a fixed-price contract?
a) Cost-based contracts
b) Firm fixed price
c) Agreement contracts

17.- Cost-based contracts are the simplest and easiest for purchasing to manage
because there is no need for extensive auditing or additional input from the purchasing
side?
a) True
b) False
Elena Cristina Ardines Gutiérrez 1877476 5Ci

18.- In this type of purchase contract, the price stated in the agreement does not
change, regard- less of fluctuations in general overall economic conditions
a) Cost-based contracts
b) Firm fixed price
c) Agreement contracts