Procurement Management

1. What is inquiry in procurement?

• Sales contract

• Late delivery complaint

• Request on goods and price information

• Shipment of documentations

2. What is Letter of Intent (LOI)?

• Sales contract

• Interest statement on purchase goods or service

• Legally contract

• Cancellation letter on sales contract

3. Why does a company decide to buy the goods rather than produce them in-house?

• Keep technology confidential

• Lack of production capacity

• Volume too few

• Management's interest

4. Why does a company decide to outsource?

• Organization change

• Adapt technology change

• Competition dominates supply

• Purchase price increase

5. What is one of the reasons to do global sourcing?

• Domestics labor abundantly

• Have capability to produce in-house

• Press down production cost

• Have sufficient raw material supply domestically

6. Below are the globalization challenges, except ....

• Transportation easiness

• Export - import documentation

• Language barrier

• Currency fluctuation

7. One of these statements is the function of vendor management.

• Ensure goods availability or service required

• Increase value for money

• Meet company's target

• Increase purchase power

8. One of the below descriptions is not traditional supplier relationship management

• Lowest price

• Avoid problem

• Short term, reactive to market

• Total cost of ownership

9. What is the purpose of cost analysis in strategic cost management?

• To measure cost performance

• To increase profitability

• To select the right suppliler

• To maintain a good supplier relationship

10. The elements of production and service costs

• Overhead cost, Indirect cost, Direct Cost

• Indirect cost, Direct Labor, General & Administrative Expenses

• Overhead Cost, General & Administrative Expenses, Direct Labor

• Overhead Cost, General & Administrative Expenses, Indirect Cost