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Worksheets

Purchasing

Total questions: 88

Worksheet time: 44mins

Name
Class
Date
1.

What is the process of buying called?

a)

Purchasing

b)

Selling

c)

Manufacturing

d)

Transporting

2.

Which of the following departments does purchasing require input from?

a)

Marketing

b)

Engineering

c)

Manufacturing

d)

All of the above

3.

Purchasing requires input from which of the following? Fill in the blank: Marketing, Engineering, Manufacturing, and ________.

a)

Manufacturing planning and control

b)

Sales department

c)

Customer service

d)

Quality assurance

4.

Manufacturing planning and control helps determine what materials to order.

a)

True

b)

False

5.

Manufacturing planning and control helps determine when to order materials.

a)

True

b)

False

6.

On average, what percentage of sales revenue is used for purchasing raw materials, components, and supplies?

a)

10%

b)

25%

c)

50%

d)

75%

7.

List three items that, on average, 50% of sales revenue is used for.

a)

Raw materials, Components, Supplies

b)

Advertising, Rent, Utilities

c)

Salaries, Marketing, Insurance

d)

Office furniture, Travel expenses, Software licenses

8.

There is tremendous potential to increase profits through purchasing and profit leverage.

a)

True

b)

False

9.

Based on the income statement, what is the total cost of goods sold? Purchases: 50,OtherExpenses:50, Other Expenses: 40. Fill in the blank: Total Cost of Goods Sold = ________

a)

$90

b)

$40

c)

$50

d)

$100

10.

Based on the income statement, what is the profit before tax? Sales: 100,CostofGoodsSold:100, Cost of Goods Sold: 90. Fill in the blank: Profit Before Tax = ________

a)

$10

b)

$90

c)

$100

d)

$0

11.

Assume a profit before tax of 10%. If sales are $100, what should the profit before tax be?

a)

$5

b)

$10

c)

$15

d)

$20

12.

What is the value of Sales in the Income Statement (with Sales Increase)?

a)

$110

b)

$90

c)

$100

d)

$120

13.

What is the total Cost of Goods Sold in the Income Statement (with Sales Increase)?

a)

$99

b)

$120

c)

$85

d)

$110

14.

What is the value of Purchases in the Income Statement (with Sales Increase)?

a)

$55

b)

$45

c)

$60

d)

$70

15.

What is the value of Other Expenses in the Income Statement (with Sales Increase)?

a)

$44

b)

$38

c)

$50

d)

$60

16.

What is the Profit Before Tax in the Income Statement (with Sales Increase)?

a)

$11

b)

$8

c)

$15

d)

$20

17.

According to the Income Statement (with Sales Increase), to increase profits by $1, sales must increase by what percentage?

a)

5%

b)

10%

c)

15%

d)

20%

18.

Based on the Income Statement (with Reduced Purchase Cost), what is the total amount for Sales?

a)

$100

b)

$200

c)

$300

d)

$400

19.

Based on the Income Statement (with Reduced Purchase Cost), what is the total Cost of Goods Sold?

a)

$89

b)

$75

c)

$102

d)

$95

20.

Based on the Income Statement (with Reduced Purchase Cost), what is the Profit Before Tax?

a)

$11

b)

$8

c)

$15

d)

$20

21.

According to the statement, to increase profits by $1, what should be done?

a)

Increase sales by 10%

b)

Decrease costs by 2%

c)

Increase purchases by 2%

d)

Decrease other expenses by 10%

22.

A 10% increase in sales has the same impact on profits as a ______ decrease in the purchase cost.

a)

2%

b)

5%

c)

10%

d)

20%

23.

What is one of the objectives of purchasing?

a)

Obtain goods and services of the required quantity and quality

b)

Increase the cost of goods

c)

Reduce supplier relations

d)

Ignore environmental impact

24.

Fill in the blank: One objective of purchasing is to obtain goods and services at the ______ possible cost.

a)

lowest

b)

highest

c)

average

d)

fixed

25.

Which of the following is an objective of purchasing?

a)

Ensure best possible service and delivery

b)

Delay delivery

c)

Reduce service quality

d)

Increase costs

26.

Fill in the blank: An objective of purchasing is to develop and maintain good ______ relations.

a)

supplier

b)

customer

c)

employee

d)

government

27.

Which objective of purchasing focuses on environmental impact?

a)

Select products and suppliers that minimize the impact on the environment

b)

Increase environmental impact

c)

Ignore environmental concerns

d)

Maximize supplier costs

28.

Fill in the blank: One of the purchasing objectives is determining purchasing specifications, which includes right quality, right quantity, and right ________ (time and place).

a)

delivery time

b)

supplier

c)

cost

d)

invoice

29.

Which of the following is NOT a part of determining purchasing specifications?

a)

Right quality

b)

Right quantity

c)

Right delivery time

d)

Right source

30.

Fill in the blank: Selecting supplier involves finding the right ________.

a)

source

b)

color

c)

height

d)

season

31.

Negotiating terms and conditions is aimed at achieving the right ________.

a)

price

b)

location

c)

color

d)

season

32.

Issuing and administration of ________ and agreements is one of the purchasing objectives.

a)

P O’s (Purchase Orders)

b)

Invoices

c)

Delivery Notes

d)

Sales Receipts

33.

Fill in the blank: Outsourcing is defined as 'having suppliers provide goods and services that were previously provided ______.' (APICS Dictionary 16th edition)

a)

internally

b)

externally

c)

by competitors

d)

by customers

34.

Which of the following is a factor that enables outsourcing?

a)

A) Availability of educated offshore workforce

b)

B) Lack of technology

c)

C) High local labor costs

d)

D) Limited supply chains

35.

Which of the following supports outsourcing?

a)

Internet communications

b)

Manual paperwork

c)

Local-only operations

d)

High tariffs

36.

Which of the following is related to outsourcing?

a)

Multimodal supply chains

b)

Single supplier dependency

c)

In-house only production

d)

No external partnerships

37.

A company concentrating on core competencies is a reason for:

a)

Outsourcing

b)

Insourcing

c)

Mergers

d)

Downsizing

38.

Offshoring is a ______ type of outsourcing.

a)

special

b)

general

c)

temporary

d)

internal

39.

Offshoring refers to outsourcing to a company in a ______ country.

a)

different

b)

same

c)

neighboring

d)

developed

40.

Which of the following can make offshoring attractive?

a)

Internet and efficient shipping

b)

High local costs

c)

Lack of communication

d)

None of the above

41.

Which of the following is a shift described in outsourcing?

a)

Working with inside staff (operations)

b)

Working with outside suppliers

c)

Both A and B

d)

None of the above

42.

Outsourcing involves performing a make-or-buy ________ analysis.

a)

cost

b)

time

c)

quality

d)

location

43.

Which of the following is NOT listed as a service that can be outsourced?

a)

Maintenance

b)

Information Technology

c)

Logistics

d)

Manufacturing

44.

Fill in the blank: Outsourcing can include services such as ________, Information Technology, Logistics, Finance, and Customer service.

a)

Maintenance

b)

Cooking

c)

Gardening

d)

Painting

45.

Customer service is one of the services that can be outsourced according to the slide.

a)

True

b)

False

46.

Fill in the blank: The first step in the Purchasing Cycle is _________

a)

Receive and analyze purchase requisitions

b)

Select the supplier

c)

Issue the purchase order

d)

Inspect the received goods

47.

Fill in the blank: The second step in the Purchasing Cycle is _________.

a)

Select suppliers, issue requests for quotations

b)

Receive and inspect goods

c)

Make payment to suppliers

d)

Identify the need for goods/services

48.

Fill in the blank: The third step in the Purchasing Cycle is _________.

a)

Determine the right price

b)

Select the supplier

c)

Receive the goods

d)

Issue the purchase order

49.

Fill in the blank: The fourth step in the Purchasing Cycle is _________.

a)

Issue purchase orders

b)

Receive goods

c)

Select suppliers

d)

Evaluate supplier performance

50.

Fill in the blank: The fifth step in the Purchasing Cycle is _________

a)

Follow up to ensure correct delivery

b)

Prepare purchase requisition

c)

Select supplier

d)

Receive and inspect goods

51.

Fill in the blank: The sixth step in the Purchasing Cycle is _________

a)

Receive and accept the goods

b)

Prepare purchase requisition

c)

Select the supplier

d)

Make payment

52.

Fill in the blank: The seventh step in the Purchasing Cycle is _________

a)

Approve invoice for payment

b)

Select supplier

c)

Receive goods

d)

Issue purchase order

53.

What system do planners use to send requisitions?

a)

ERP system

b)

Payroll system

c)

CRM system

d)

Inventory scanner

54.

Which of the following is NOT a task performed by Purchasing when receiving and analyzing requisitions?

a)

A) Identify requestor, approvals, account number

b)

B) Check material specifications

c)

C) Approve supplier invoices

d)

D) Verify delivery date and place

55.

Fill in the blank: Purchasing will ________ material specifications when receiving and analyzing requisitions.

a)

check

b)

ignore

c)

delay

d)

misplace

56.

Fill in the blank: Purchasing will verify ________ and unit of measure when receiving and analyzing requisitions.

a)

quantity

b)

price

c)

location

d)

supplier

57.

Fill in the blank: Purchasing will ensure all ________ information is included when receiving and analyzing requisitions.

a)

supplemental

b)

irrelevant

c)

outdated

d)

confidential

e)

random

58.

Fill in the blank: Suppliers are often selected from a list of ______ suppliers.

a)

approved

b)

temporary

c)

random

d)

unverified

59.

Fill in the blank: Input from ______ and design is considered when selecting suppliers.

a)

engineering

b)

marketing

c)

finance

d)

logistics

60.

Searching for new suppliers is a part of the supplier selection process.

a)

True

b)

False

61.

Quotes are analyzed for _________.

a)

Price

b)

Color

c)

Shape

d)

Size

62.

Quotes are analyzed for _________.

a)

Total cost

b)

Delivery address

c)

Product color

d)

Customer feedback

63.

Quotes are analyzed for _________.

a)

Compliance to specification

b)

Market trends

c)

Employee satisfaction

d)

Customer feedback

64.

Quotes are analyzed for _________.

a)

Terms and conditions of sale

b)

Employee attendance

c)

Weather patterns

d)

Nutritional value

65.

Quotes are analyzed for _________.

a)

Delivery

b)

Grammar

c)

Punctuation

d)

Spelling

66.

Quotes are analyzed for _________.

a)

Payment terms

b)

Color schemes

c)

Font styles

d)

Weather patterns

67.

Why is a written RFQ sent to enough suppliers?

a)

To ensure competitive and reliable quotes are received.

b)

To reduce the number of suppliers in the market.

c)

To delay the procurement process.

d)

To avoid documenting the requirements.

68.

Fill in the blank: Determining the right price is ________ the lowest.

a)

not always

b)

always

c)

never

d)

usually

69.

Fill in the blank: Determining the right price may involve ________.

a)

negotiations

b)

transportation

c)

advertising

d)

packaging

70.

Fill in the blank: Determining the right price is the responsibility of the ________ department.

a)

purchasing

b)

sales

c)

marketing

d)

finance

71.

What type of document is a purchase order?

a)

Informal note

b)

Legal document

c)

Invoice

d)

Receipt

72.

A purchase order forms a contract with the supplier upon acceptance.

a)

True

b)

False

73.

Fill in the blank: Copies of the purchase order are sent to the ________, Accounting, Originator, Receiving, and Purchasing file (if not electronic).

a)

Supplier

b)

Customer

c)

Manager

d)

Auditor

74.

Which of the following is NOT typically a recipient of a purchase order copy?

a)

Supplier

b)

Accounting

c)

Customer

d)

Originator

75.

List all the entities that receive copies of a purchase order according to the slide.

a)

Supplier, Accounting, Originator, Receiving, Purchasing file (if not electronic)

b)

Supplier, Sales, Marketing, IT, Purchasing file

c)

Supplier, Accounting, HR, Receiving, Legal

d)

Supplier, Accounting, Originator, Shipping, Purchasing file

76.

Fill in the blank: One of the key steps in follow-up and delivery is to ________ on-time delivery.

a)

ensure

b)

delay

c)

ignore

d)

postpone

77.

Fill in the blank: In follow-up and delivery, it is important to negotiate any ________.

a)

changes

b)

payments

c)

locations

d)

deadlines

78.

Fill in the blank: Taking corrective action in follow-up and delivery may require you to ________ as required.

a)

expedite

b)

delay

c)

ignore

d)

postpone

79.

Fill in the blank: If there are supply issues, you may need to find alternative sources of ________.

a)

supply

b)

demand

c)

transport

d)

storage

80.

Fill in the blank: To resolve problems in follow-up and delivery, you should work with ________.

a)

suppliers

b)

customers

c)

managers

d)

distributors

81.

Fill in the blank: If necessary, you may need to ________ production as part of corrective action in follow-up and delivery.

a)

reschedule

b)

cancel

c)

delay

d)

increase

82.

What is the first step when receiving goods?

a)

Sending goods to quality for inspection

b)

Receiving and inspecting goods for correct quantity and any damage

c)

Generating a receiving report

d)

Holding goods damaged in transit

83.

After accepting goods, what report is generated?

a)

Shipping report

b)

Receiving report

c)

Quality report

d)

Damage report

84.

If goods are damaged in transit, they are ________.

a)

held

b)

returned

c)

sold

d)

delivered

85.

A purchase order (PO) is considered 'closed' when:

a)

Goods are sent for further inspection

b)

All goods have been received completely

c)

Goods are held due to damage

d)

Remaining quantities are to be received

86.

What are the three components of a 3-way match in the process of approving an invoice for payment?

a)

Original purchase order, Receipt transaction, Invoice

b)

Invoice, Bank statement, Payment voucher

c)

Purchase requisition, Invoice, Delivery note

d)

Goods receipt, Payment advice, Purchase order

87.

In the process of approving an invoice for payment, what should be checked on the invoice?

a)

Price including discounts and Quantity

b)

Date of next delivery only

c)

Supplier's logo only

d)

Payment method only

e)

Customer's address only

88.

After the 3-way match is completed, where should the invoice be sent?

a)

Accounts payable for payment

b)

Human resources for review

c)

Sales department for approval

d)

Warehouse for storage

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