All of the following are examples of factors in Porters market internal competition force
except _____.
a. speed of industry growth
b. buyer propensity to substitute
c. exit barriers
d. switching costs
e. capacity utilization
Material discrepancies usually result from incorrect quantity shipments.
a. True
b. False
The cost of a new product is no longer an outcome of the product design process; rather,
it is an input to the process.
a. True
b. False
A/An _____ is issued by the purchasers bank in conjunction with an affiliate bank in
the sellers country which assures the seller that the funds are in the bank.
a. bill of lading
b. letter of credit
c. Incoterm
d. hedging contract
e. tariff
Transportation costs can be measured only in total dollars and never as a percentage of
cost of goods sold or sales revenue.
a. True
b. False
_____ refers to a modes or carriers ability to provide the proper equipment and provide
the appropriate services for a given product movement.
a. Accessibility
b. Capability
c. Speed
d. Total cost
e. Reliability
Which of the following is not one of the advantages of air carrier over other modes of
transportation?
a. Quick and reliable.
b. Good for light/small, high-value shipments.
c. Good for expediting/emergency situations.
d. Low cost.
e. None of the above.
All of the following should be included in detailed short- and long-term purchasing
plans except _____.
a. historical and projected future usage of the purchased item
b. purchase objectives
c. assignment of the proper cost accounting code
d. assessment of the supply market
e. cost/price analysis
The importance of effectively managing an organizations indirect spend is decreasing.
a. True
b. False
Some sellers rely on a detailed analysis of internal cost structures to establish price,
whereas others simply price at a level comparable to the competition.
a. True
b. False