Purchasing Procedures Vocabulary

What is the business function in which the company obtains the items needed to create their merchandise or complete daily operating functions?

• Purchasing

• Marketing

• Accounting

• Human Resources

What type of purchase is made for the first time?

• New-task Purchase

• Straight Rebuy

• Modified Rebuy

• Routine Purchase

What type of purchase occurs when the buyer has experience buying a product or service, but an aspect of the purchase has changed such as quantity or vendor?

• Modified Re-buy Purchase

• Straight Re-buy Purchase

• New Task Purchase

• Routine Purchase

What type of purchase takes place when the buyer routinely orders the same product or service from the same vendor?

• Straight Re-buy Purchase

• Modified Re-buy Purchase

• New Task Purchase

• Impulse Purchase

What are items or services necessary to complete a task; classified by type, size, speed and strategic vs. operational?

• Needs

• Wants

• Resources

• Assets

What is an inner-office document requesting needed items called?

• Requisition

• Invoice

• Memo

• Purchase Order

What do you call a company which provides goods or services to company buyers; can also be called a supplier?

• Vendor

• Customer

• Distributor

• Retailer

What is the reduction in price on the merchandise purchased called?

• Discount

• Commission

• Tax

• Surcharge

What is an offer to supply goods or services; includes a quote for the cost?

• Bid

• Invoice

• Receipt

• Contract

What consists of price, delivery arrangements, payment terms, discounts and tax exemptions; should be negotiated to make sure agreements are met?

• Terms of Purchase

• Product Specifications

• Quality Standards

• Supplier Evaluation