1. The
hybrid purchasing system, such as the one utilized by Harrah’s, includes many
benefits. In such a system the regional office preserves four fundamental
purchasing rights. Which of the following is NOT one of those rights?
|
a. |
Allow suppliers to bid for |
|
b. |
Select the supplier |
|
c. |
Use whichever pricing method |
|
d. |
Monitor contacts with |
2. According
to the textbook, the Las Vegas division of Harrah’s Entertainment utilizes
which of the following purchasing structures?
|
a. |
Autocratic |
|
b. |
Decentralized |
|
c. |
Centralized |
|
d. |
Hybrid |
3. The
primary goals of purchasing include all EXCEPT:
|
a. |
Secure materials at the |
|
b. |
Ensure the highest quality |
|
c. |
Improve the quality of |
|
d. |
Maximize customer |
4. The
measurement of the impact of change in purchase spend on a firm profit before
taxes, assuming gross sales and other expenses remain unchanged, is referred to
as:
|
a. |
Break-Even Analysis |
|
b. |
Direct Offset |
|
c. |
Profit-Leverage Effect |
|
d. |
Leveraging Purchase Volume |
5. When
calculating Return on Investment, current assets include:
|
a. |
Cash, Accounts Receivable, |
|
b. |
Cash, Accounts Receivable, |
|
c. |
Accounts Receivable, |
|
d. |
Equipment, Buildings, and |
6. Which
type of requisition is used for materials and standard parts that are requested
on a recurring basis?
|
a. |
Open requisition |
|
b. |
Blanket requisition |
|
c. |
Traveling requisition |
|
d. |
Recyclable requisition |
7. Inventory
Turnover can be calculated by:
|
a. |
Ratio of average inventory |
|
b. |
Ratio of cost of goods sold |
|
c. |
Ratio of inventory days in |
|
d. |
Ratio of average inventory |
8. A
pre-printed order form for purchasing materials and standard parts that are
requested on a recurring basis is referred to as:
|
a. |
Material Requisition |
|
b. |
Purchase Requisition |
|
c. |
Planned Order Release |
|
d. |
Traveling Requisition |
9. A
form of purchasing that is placed directly to the supplier and suitable when
firms use the same components to make standard goods over a relatively long
period of time is referred to as:
|
a. |
Material Requisition |
|
b. |
Purchase Requisition |
|
c. |
Planned Order Release |
|
d. |
Traveling Requisition |
10. When
a material is not available in the warehouse and there is no current supplier
for the item, the buyer must identify a pool of suppliers and issue a:
|
a. |
Request for Quotation |
|
b. |
Purchase Order |
|
c. |
Contract for Sale |
|
d. |
Sales Order |
