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630-006

C.P.M. Module 2: Supply Environment

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QUESTION: 189

Which of the following should a buyer use when conducting price analysis? (Choose all that apply)

1. An analysis of competitive proposals

2. Comparisons with published prices

3. Comparisons with historical prices

4. Internal cost estimates

Answer: A, B, C, D

QUESTION: 190

With which of the following departments within its own organization should purchasing work MOST closely when performing supplier capability evaluations and site visits?

1. Quality control

2. Engineering

3. Manufacturing

4. Finance

Answer: A

QUESTION: 191

When (if ever) does a purchaser have the right to resell nonconforming goods and deduct reasonable sales costs from proceeds? (Choose all that apply)

1. If the purchaser has paid for the goods and owns them

2. If the purchaser has rejected the goods, and the supplier has not responded in a reasonable time

3. If the purchaser has accepted the goods and then found them in nonconformance

4. Never.

QUESTION: 192

Which of the following is NOT a technique for increasing minority business participation?

1. negotiation

2. expediting supplier payment

3. establishing reasonable specifications

4. cooperative purchasing

Answer: D

QUESTION: 193

Which of the following is the PRIMARY purpose of a trade association?

1. To advance the cause of the profession

2. To continually search for best practices in the industry

3. To lobby for the interests of the industries represented

4. To provide educational and research benefits to members

Answer: C

QUESTION: 194

What is the MOST important thing a purchasing manager should do when meeting with

outside organizations?

1. Make sure that all presentations are given in a professional manner

2. Avoid any impression of impropriety

3. Know as much about the audience as possible

4. Take meeting notes and reviewing them with the legal department

Answer: B

QUESTION: 195

With which of the following does responsibility for resolving the cost aspects of a defective purchased product usually lie?

1. The manufacturing manager.

2. The financial manager.

3. The purchasing manager.

4. The accounting manager.

Answer: C