POB OBJ 4.02 MC

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

• receipt of goods

• bid analysis

• invoice payment

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

Which question should be answered by the purchasing function?

• How much merchandise should we buy?

• How can we inform customers of available merchandise?

• 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 the supplies.

• develop a list of supplies that the business needs.

• compare prices among vendors.

• organize a space to store the supplies.

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

• budget for expenses.

• work environment.

• inventory of supplies.

• maintenance system.

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.

Maintaining an inventory of supplies helps a business to:

• establish sales goals.

• operate efficiently.

• locate vendors

• evaluate processes.

Primetime Incorporated is a retailer of sporting gear. It sells 500 pairs of a specific Nike sneaker each day. Nike, the supplier, takes a week (7 days) to deliver the order. For what quantity should the inventory manager place his/her next order?

• 3,500 units

• 72 units

• 350 units

• 3,000 units