POB Unit 4.01-4.03

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

• electronic data interchange

• supply manuals

• safety training

• weight loss programs

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

• protect employees from injury and illness

• reduce the risk of employment discrimination

• ensure that employee have access to insurance

• prevent the breach of business information systems

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

• budget for expenses

• work environment

• maintenance system

• inventory of supplies

Maintaining an inventory of supplies helps a business to:

• establish sales goals

• operate efficiently

• locate vendors

• evaluate processes

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?

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

• conduct research to find vendors that sell supplies

• develop a list of supplies that the business needs

• compare prices among vendors

• organize a space to store the supplies

Comparing the prices of different vendors for the same good and services is which part of the purchasing process?

• price fixing

• invoice payment

• receipt of goods

• bid analysis

As the owner of a small home appliance store, you are placing an order for 10 refrigerators and 6 stoves. Refrigerators are $500 each and stoves are $650. What is the total cost refrigerators and stoves?

• $5000

• $3900

• $8900

• $7000

MJP Store sells 350 units per day. It's supplier takes 3 weeks to deliver the order. At what quantity should inventory manager place his next order?

• 7000

• 10,500

• 4900

• 7350