POBF Competency 4 Review

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?

Which processes turn economic resources into goods and services?

• distribution

• marketing

• promotion

• production

Which is a example of a short-term objective?

• becoming president of a large corporation

• paying off a twenty-five-year mortgage

• finishing a six-week computer software course

• becoming fluent in a foreign language

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.

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

• budget for expenses.

• work environment.

• inventory of supplies.

• maintenance system.

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.

What production activity evaluates products to make sure that the products the business produces meet certain quality standards?

• form utility

• automation

• follow-up

• standardization

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.

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

What is one of the most important components of the production process?

• new technology

• goods and services

• human resources

• inputs and outputs