MKT 10-1 Purchasing Quiz Business U

What are direct procurement costs related to?

• Non-production-related purchases

• Cost of goods and production of finished products

• Administrative aspects of purchasing

• High-level purchasing decisions

What is the formula for Gross Margin?

• Sales revenue minus administrative costs

• Sales revenue minus cost of goods sold (COGS)

• Sales revenue minus indirect procurement costs

• Sales revenue minus operational costs

What do indirect procurement costs include?

• Production-related purchases

• Non-production-related purchases

• Finished product costs

• Sales revenue

What does operational purchasing include?

• High-level purchasing decisions

• Non-production-related purchases

• Day-to-day and administrative aspects of purchasing

• Cost of goods sold

What is procurement responsible for?

• Planning high-level decisions

• Buying and gathering all necessary materials for production and/or daily operations

• Non-production-related purchases

• Sales revenue management

What does purchasing involve?

• Acquisition of goods and services on behalf of a business

• Planning high-level decisions

• Day-to-day administrative tasks

• Cost of goods sold

What is strategic purchasing responsible for?

• Day-to-day purchasing tasks

• Planning high-level decisions that go into purchasing

• Non-production-related purchases

• Cost of goods and production

Which type of procurement involves non-production-related purchases?

• Direct Procurement

• Indirect Procurement

• Operational Purchasing

• Strategic Purchasing

Which term refers to the organized acquisition of goods and services?

• Procurement

• Purchasing

• Direct Procurement

• Gross Margin

Which aspect of purchasing includes administrative tasks?

• Strategic Purchasing

• Operational Purchasing

• Direct Procurement

• Indirect Procurement