Chapter 13 Purchasing, Inventory, and Quality Control Answer Key
Multiple Choice Questions
1.
Obtaining all items, including goods and services, in the proper form and at the proper
place, time, and cost is the main objective of:
2.
What is the significance of the Federal Acquisition Streamlining Act?
3.
Which of the following statements is true of just-in-time (JIT) delivery?
4.
Which of the following is one of the two current trends in purchasing that are causing
considerable problems for small firms?
5.
Which of the following refers to supplier-base downsizing?
6.
Which of the following is true of assigning responsibility for purchasing?
7.
_____ are sales lost because an item is not available in a store when customers want it.
8.
The _____ is an integrated-coordinated system of activities to transform raw materials into
finished products delivered to the end consumer.
9.
_____ is the process of coordinating the movement, storage, and all processes, from
beginning to end.
10.
What is the advantage of using multiple sources of supply?
11.
A(n) _____ tells a supplier to ship a given amount of an item at a given quality and price.
12.
_____ set predetermined times to ship given quantities of needed products at a given
price.
13.
A(n) _____ is a formal list of all the property of a business, or the property so listed.
14.
_____ are derived from a language called symbologies and are used for specific
identification of objects.
15.
Which of the following statements is true about radio-frequency identification (RFID)?
16.
_____ is the trademark for a type of machine-readable optical label containing information
about the item to which it is attached.
17.
_____ is carried to disconnect one segment of the operating process of a business from
another so that each part can operate at its optimum level.
18.
Which of the following statements is true of the 80-20 rule?
19.
When can an optimum inventory level be maintained?
20.
The _____ is the quantity to purchase that balances the cost of placing the order with the
cost of carrying the inventory.
21.
When inventory level determines the time to order in a business, the order quantity is a
fixed amount called the _____.
22.
Which of the following can the owners of small businesses do to cope with variations in
demand?
23.
_____ is setting the times and sequences needed to perform specialized activities.
24.
_____ refers to product characteristics and the probability of meeting established
standards.
25.
Which of the following statements is true of the quality assessment of a product?
26.
_____ are small work groups meeting periodically to find ways to improve the standard and
performance of work.
27.
Which of the following statements is true of the members of quality circles?
28.
_____ is a system used by a producer to ensure that the finished goods or services meet
the expectations of customers.
29.
Which of the following is one of W. Edwards Deming’s 14 points of management
philosophy and techniques?
30.
The _____ is a nongovernmental bridging organization that establishes global barometers
for quality.
True / False Questions
31.
Materials that have a high cost relative to revenue take up a large share of a small
business owner’s time.
32.
The cost of materials and services needed to produce a product is usually one-fourth of
the revenue received for it.
33.
Purchasing for a manufacturing plant involves getting the proper materials and processing
them into finished goods while maintaining inventory and quality control.
34.
The Federal Acquisition Streamlining Act prohibits government agencies from purchasing
off-the-shelf items.
35.
Close coordination between an owner and a supplier can improve efficiency by shifting
inventory costs to the distributors.
36.
Just-in-time delivery increases inventory costs.
37.
Supplier-base downsizing means reducing the number of suppliers to concentrate
purchasing.