Despite its apparent simplicity, barter is one of the least-practiced forms of countertrade
today.
a. True
b. False
Certain suppliers who may present the lowest cost seldom present greater risks.
a. True
b. False
Strategic cost management approaches do not vary according to the stage of the product
life cycle.
a. True
b. False
Good negotiators know that reaching agreement is the end of the negotiation process.
a. True
b. False
A performance objective must reflect the realities of the firms competitive environment.
a. True
b. False
When a situation arises when an internal customer has a need that comes up suddenly,
which is not planned for and for which there is no preexisting supplier identified to
provide the product or service required, purchasing should use a/an _____ approach.
a. spot buy
b. long term agreement
c. P2P
d. e-procurement
e. None of the above.
Which of the following is not one of the spending reduction strategies used following a
spend analysis?
a. Consolidation of unrelated purchases.
b. Consolidation of similar purchases.
c. Reduction in the number of suppliers.
d. Reduction of maverick spend.
e. Increased use of more efficient contracting methods.
All of the following are goals for a strategic category except _____.
a. develop a competitive advantage
b. support and leverage the suppliers core competencies
c. develop best-in-class suppliers
d. support the companys overall strategy
e. simplification of the procurement process using electronic tools
A _____ has a high volume of internal consumption, is readily available, is important to
the business, and represents a significant proportion of spend.
a. leverage commodity
b. portfolio commodity
c. critical commodity
d. routine commodity
e. bottleneck commodity
A buyer cannot realistically expect the highest levels of supplier performance when the
supplier must respond to frequent or short lead time changes.
a. True
b. False
A _____ is a request to submit a proposal based on a set of specifications provided by a
buyer.
a. kanban
b. reverse auction
c. PO
d. bill of materials
e. RFQ
_____ include(s) all costs incurred when a product, service, or capital equipment
reaches the end of its useful life, net of amounts received from the sale of remaining
product or the equipment (salvage value).
a. Net present value costs
b. Usage costs
c. Purchase price
d. End-of-life costs
e. Opportunity costs
Which of the following key financial ratios is calculated as Profit after taxes/Sales?
a. Current debt to equity.
b. Fixed asset turnover.
c. Return on assets.
d. Says sales outstanding.
e. Net profit margin.
Purchasings role in countertrade is not as visible as marketings role.
a. True
b. False