Purchasing System Quiz

What is the primary purpose of a purchasing system in retail?

• To increase supplier profits

• To ensure timely and cost-effective procurement

• To reduce customer complaints

• To eliminate the need for budgeting

Which of the following is NOT a stage in the purchasing cycle?

• Identifying the need

• Selecting a supplier

• Ignoring quality control

• Placing the purchase order

Which of the following is a type of purchasing?

• Bulk purchasing

• Retail marketing

• Inventory disposal

• Market segmentation

What is the primary advantage of centralized purchasing?

• Higher purchasing costs

• Increased supplier confusion

• Better cost control and standardization

• Less control over procurement

Which method of purchasing involves negotiating long-term agreements with suppliers?

• Spot purchasing

• Contract purchasing

• Ad-hoc purchasing

• Emergency purchasing

What is the role of a purchase order in the procurement process?

• It serves as an informal agreement with a supplier

• It records customer feedback

• It legally confirms the purchase details

• It replaces supplier invoices

A well-structured purchasing procedure ensures:

• Higher supplier profits

• Streamlined procurement and reduced costs

• More product returns

• Lower customer satisfaction

What is the primary function of the purchasing department in an organization?

• Handling customer complaints

• Selecting and acquiring goods and services

• Managing employee payroll

• Selling products to end consumers

What does a purchase budget help an organization achieve?

• Uncontrolled spending

• Accurate financial planning and inventory control

• Increased supplier dependence

• Frequent emergency purchases

What is the first step in the purchasing cycle?

• Placing an order

• Identifying the need

• Paying the supplier

• Receiving the goods