POB Unit 4 Test

By purchasing just the quantity of supplies that is needed, purchasing can:

• plan the company's cash flow.
• provide an uninterrupted flow of supplies.
• buy supplies at the lowest possible price.
• minimize inventory investment.

Which question should be answered by the purchasing function? 

• How can we inform customers of available merchandise?
• How much merchandise should we buy?
• How will merchandise be shipped to us?
• How can we protect merchandise from pilferage?

Maintaining an inventory of supplies helps a business to: 

• establish sales goals.
• operate efficiently.
• locate vendors.
• evaluate processes.

Trey compares the prices offered by different vendors for the same goods and services. Which part of the purchasing process is Trey involved in?

• price fixing
• bid analysis
• invoice payment
• receipt of goods

The first step in maintaining an inventory of supplies for the business is to:

• conduct research to find vendors that sell the supplies.
• develop a list of supplies that the business needs.
• compare prices among vendors.
• organize a space to store the supplies.

Mark, who owns a small home-appliance store, is in the process of placing an order for 12 refrigerators, 8 stoves, and 4 portable dishwashers. Mark is purchasing the refrigerators for $674.98 each, the stoves for $493.22 each, and the portable dishwashers for $284.83 each. What is the total cost of the stoves that Mark is purchasing?

• $493.22
• $3,945.76
• $2,278.64
• $5,399.84

Some businesses use an automatic reorder system to maintain an adequate:

• budget for expenses.
• work environment.
• inventory of supplies.
• maintenance system.

The primary reason that governments develop workplace health and safety regulations is to:

• protect employees from injury and illness.
• reduce the risk of employment discrimination.
• ensure that employees have access to insurance.
• prevent the breach of business information systems.

One way a business can reduce the risk of accidents in the workplace is by providing its employees with:

• safety training.
• electronic data interchange (EDI).
• supply manuals.
• weight-loss programs.

Which is a benefit of putting one's goals in writing?

• makes the goals attainable
• develops one's perseverance
• clarifies the goals
• provides a challenge