POB 4.02 Quiz

A series of sequential steps taken by purchasing specialists to buy goods and services for a business.

• Purchase Order

• Purchasing Process

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

• develop a list of supplies that the business needs.

• 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?

• $3945.76

• $5399.84

Which question should be answered by the purchasing function?

• How can we inform customers of available merchandise?

• How much merchandise should we buy?

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

• buy supplies at the lowest possible price.

• minimize inventory investment.

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

• competitive bidding

The buying of goods and services for a business.

• Purchasing

• Bid Analysis

In which step of the purchasing process do you evaluate supplier credentials and send out bids?

• Selecting Suppliers

• Developing A Purchasing Agreement

When you review your order to make sure you received the correct items, in the right quantity, and at the right price, you are in which stage of the purchasing process?

• Selecting Suppliers

• Evaluating Supplier Performance

What are the 3 types of purchasing?

• Resale

  Retail

  Wholesale

• Resale

  Transformation

  Business Use