Chapter 4
The Procurement Process
Multiple Choice Questions
1.
Which one of the following is not a type of organizational data that is utilized in the
procurement process?
a. Client
b. Company Code
c. Storage Location
d. Purchasing Organization
e. Manufacturing Plant
Answer: e Difficulty: Easy Page Reference: 2
Section: Organizational Data Practice:
2.
What is a storage location?
a. The place where raw materials are received
b. The place within a plant where materials are kept until they are needed
c. The place where materials are collected for staging and inspection
d. The place within a plant where machines are installed for production purposes
e. The place within a plant where finished goods are kept for sale
Answer: b Difficulty: Medium Page Reference: 2
Section: Storage Location Practice:
3.
Which organizational element(s) control(s) the entry of accounting data in the vendor
master?
a. Purchasing organization
b. Client
c. Company Code
d. Client and Company Code
e. Client and Purchasing Organization
Answer: d Difficulty: Easy Page Reference: 3
Section: Organizational Data Practice: Yes
4.
A purchasing organization is involved in all of the following operations except
a. Negotiating contracts and agreements
b. Negotiating pricing with vendors
c. Evaluating and identifying vendors
d. Determining storage locations within the plant
Answer: d Difficulty: Medium Page Reference: 4
Section: Purchasing Organization Practice:
5.
Which one of the following is not a model of the purchasing organization?
a. Enterprise level
b. Company level
c. Client level
d. Plant level
e. Cross-plant
Answer: c Difficulty: Medium Page Reference: 4-6
Section: Purchasing Organization Practice:
6.
Within the plant-level purchasing organization, also known as a plant-specific purchasing
e. Two or more purchasing organizations are responsible for each plant
Answer: a Difficulty: Difficult Page Reference: 5
e. Planning for material requirements
Answer: b Difficulty: Medium Page Reference: 6
