POB Unit 4.00 Part 1 Review

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

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

• protect employees from injury

• 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

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

• develop a list of supplies that the business needs

• compare prices among vendors

• organize a space to store the supplies

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 us an automatic reorder system to maintain an adequate:

• budget for expenses

• work environment

• inventory of supplies

• maintenance system

Maintaining an inventory of supplies helps 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?

• 72 units

• 350 units

• 3,000 units

• 3,500 units