The parameters on which a professional services supplier is evaluated should include,
but not be limited to, quality, cost management, delivery, technical support, and
wavelength.
a. True
b. False
_____ represents the link between a company and its customers.
a. Inbound logistics
b. Intraorganizational movement
c. Reverse logistics
d. Outbound logistics
e. Recovery and recycling
Which of the following key financial ratios is calculated as Sales/Total assets?
a. Fixed asset turnover.
b. Total asset turnover.
c. Current ratio.
d. Return on assets.
e. Interest coverage.
In a _____ contract, the supplier receives reimbursement for all of its allowable costs up
to a predetermined amount plus a fixed fee, which typically represents a percentage of
the targeted cost of the good or service being procured.
a. cost plus fixed-fee
b. fixed-price with redetermination
c. time and materials
d. fixed-price plus fixed-fee
e. None of the above.
It is uncommon to have measures that track different aspects of a firms inventory
investment.
a. True
b. False
Betty goes into Mimis Wholesale Video Store and says to Mimi, I want to buy 500
DVDs of the Last Vegas movie from you. I will pay you $10 for each DVD. This is an
example of [a/an] _____.
a. acceptance
b. breach
c. offer
d. due diligence
e. conditional offer
All of the following are important barriers to lean supply except _____.
a. large warehouses
b. dispersed supply base
c. historic buyer-supplier relationships
d. number of suppliers
e. supplier quality performance
Cost avoidance figures almost always require manual calculation and are sometimes
subject to exaggeration.
a. True
b. False
_____ is that level of authority perceived by the seller to be available to the purchasing
manager.
a. Actual authority
b. Apparent authority
c. Consideration
d. Personal liability
e. Transparent authority
In global commerce, people assume that the terms of one market are acceptable in
another and do not recognize cultural or legal landmines.
a. True
b. False
Which of the following is one of the dimensions used in developing a clear
understanding of the buyers expectations and requirements?
a. The ability of the buyer to succinctly identify, define, quantify, or specify its technical
and sourcing requirements.
b. The sellers ability to effectively communicate its requirements.
c. How compatible the buyers and suppliers respective corporate cultures are.
d. The ability of the selling company to succinctly identify, clearly define, quantify, or
specify its technical and sourcing requirements.
e. None of the above.
The _____ clause of a contract specifies terms such as current price, prior price, and
other criteria that determine how or if prices will be adjusted over the course of the
contract.
a. force majeure
b. most favored customer
c. key performance indicators and compensation
d. payment
e. intellectual property