ManageFirst Purchasing Practice Test

These questions are part of the practice quiz. Start practicing

• In a win-win negotiation, what outcome is achieved?
• In a make-or-buy analysis, what is typically the first factor to determine?
• In a large chain operation, to whom does purchasing typically report?
• What is likely to be an important evaluation factor for price-conscious purchasers?
• Frozen foods must be received at what temperature in Fahrenheit?
• Forecasts indicate that 530 customers will be served Saturday night and 17 percent will order sirloin steaks. How many sirloin steaks will be served?
• What is a backorder?
• When preparing for vendor negotiations, what is there to consider?
• In a centralized operation, who should receive a copy of the purchase order?
• A vendor statement is best described as which of the following?
• A purchaser wants to order highly perishable products for immediate use. She needs 12 cases and currently has 2.5 cases available. How many cases will she normally purchase?
• Refrigerated foods should be received at what temperature in Fahrenheit?
• Who typically bills the franchises for products received through the purchasing system established by a large multi-unit franchisor?
• Where are concerns about purchasing ethics often documented within a company?
• Who is typically responsible for receiving and inspecting goods against the purchase order?
• Quality standards are driven by what should be produced and delivered?
• What best describes the advantage of cooperative buying?
• A decentralized purchasing system is most often used by which type of establishment?
• What is the definition of value in purchasing?
• The payment to be made in exchange for the promises contained in a contract is called the
• What is a request for proposal (RFP)?
• When should a delivery invoice be signed?
• Which term describes the form of products such as fresh produce and tomato products?
• A fallback position in negotiations is best described as?
• Which of the following best describes the purpose of a purchase specification document?
• Which of the following is a primary reason to use a brand when creating a purchase specification?
• Which policy describes a vendor contacting a production employee without the purchaser's approval?
• The amount of inventory needed to maintain a continuing supply is called?
• One limitation with parstock levels is?
• A vendor statement is best described as?
• Some POS systems track sales and determine the quantity of ingredients that should have been used by referencing standardized recipes. What do these systems reference?
• A request for proposal is best described as
• What does a job description describe about a purchaser's position?
• When receiving, vendor order must be compared with?
• Some operations combine concerns about purchasing ethics in a what?
• Expedited orders are described by which characteristic?
• A petty cash fund is typically used with which type of purchasing system?
• What happens when a backorder occurs?
• What is a financial impact of high inventory levels?
• Taking inventory, what term describes the extra stock kept to avoid stockouts?
• Which type of purchaser is concerned about the relationship between price and quality as purchasing decisions are made?
• Which statement best defines a backorder?
• Who purchases most of the products needed by the units in very large organizations?
• Which type of skill does a purchaser rely on most when determining how to reduce costs without reducing quality?
• How can a purchaser ensure that vendors provide the specified quality?
• Why do receiving staff use product specifications?
• Vendor sourcing involves activities in which the buyer
• What kind of purchasing system allows products to be received close to when they're needed?
• What can buyers do to establish a better negotiation?
• What is the primary purpose of a purchase order?
• Which is the best information on which to base selection of a vendor?
• In win-win negotiation, which outcome is most aligned with its purpose?
• Before accepting goods, you should verify the delivery invoice against which document?
• In smaller, independent operations, who is responsible for developing codes of purchasing ethics?
• Quality is most difficult to establish for which category of products?
• Which action best demonstrates interpersonal skills in procurement?
• What item is commonly found in a product specification?
• Which of the following statements is true about prices charged by reputable vendors?
• How do excessive quantity of products in inventory impact the operation's cash flow?
• The initial step in the purchasing cycle is to determine what?
• What type of product is most difficult to purchase and distribute in a large multiunit organization?
• Which category would include both fresh produce and its processed forms like purée and paste?
• Which characteristic of the ordering process is the same in large- and small-volume?
• In decentralized purchasing, who must approve an over-limit order?
• When is product ownership transferred from the vendor to the purchaser?
• Backorder occurs when the vendor cannot fill the purchaser's order.
• In evaluating quality, the key criterion is the product's?
• What is the purpose of a credit memo?
• In decentralized purchasing, if an order exceeds a pre-established cost limit, what happens?
• In what way can produce be sent to preserve quality?
• Which receiving task is not clerical or physical and requires extensive training and experience?
• In preparation for negotiation, which action helps ensure focus on quality and quantity?
• What term describes the early payment discount offered in terms like 3/15?
• Which skill involves trading staff, handling vendors, and cooperating with other managers?
• In vendor sourcing, which activity best characterizes the process?
• Which factor is important when evaluating a vendor?
• What is true about the prices charged by the most reputable vendor?
• Where are guidelines for purchasing decisions typically found?
• When does the purchasing process begin?
• Which document is used to formally place an order with a vendor?
• Values perception is defined as?
• What activity is typically a responsibility for a purchaser?
• When you purchase something with an agreement for something else besides money in return, it is called what?
• Which statement best describes par stock in inventory management?
• To markup a price and find percentage you?
• What is the best definition of quality?
• What is the approximate number of vendors that should be approved for each category of food products?
• How should a purchaser evaluate operation quality requirements?
• Some operations allow their employees to buy products from other vendors at a discounted price this is known as a?
• If you were to receive a vacation in return of payment what is it called?
• Who should receive a copy of the purchase order when the purchaser authorizes shipment from a vendor?
• Which products should the minimum-maximum inventory system be used for?
• What is the purpose of a petty cash fund?
• Which figure is needed to convert a purchase price into the cost per servable pound?
• Competitive advantage refers to benefits that give an organization an edge over its competitors.
• Reciprocity in purchasing is defined as what practice?
• Which document is commonly used to confirm that ownership transfers at delivery after the buyer signs?
• Which statement is true about acceptable substitutes?
• What type of negotiation position reflects when negotiation on a specific point should be concluded?
• With what type of purchasing system are vendors considered a resource?
• Which term describes an arrangement where employees can purchase products from other vendors at a reduced price?
• In very large organizations, which entity is most associated with purchasing most products?
• What product price is government controlled?
• What does '3/15; net 30' mean in payment terms?
• A vendor's price reduction is a discount when it is applied to net price.
• When converting 35% to a decimal for calculation, what is the decimal form?
• Parstock is best described as stock kept to prevent stockouts.
• What happens in the best relationships between buyers and vendors?
• Fresh whole tomatoes, tomato purée, tomato paste, and similar items are examples of which category?
• A signature dish is a menu item that?
• Quality standards are based on?
• What must first be determined when doing a make-or-buy analysis?
• What type of negotiation position reflects a buyer's ideal outcome?
• Stock out occurs when an item has been depleted from inventory. (Reworded for testing)
• Which topic is most likely to be included in a vendor handbook?
• What is the purpose of a purchasing code and ethics?
• What must a purchaser know in order to determine the quality of a product?
• Which entity will not inspect a vendor?
• In a large chain operation, which role is typically responsible for purchasing decisions?
• The parstock approach requires which of the following?
• Which amount would be typical for a prompt payment discount?
• Specifying the exact name of the item can?
• In evaluating value, which pair of factors is considered?
• What is the most reliable way to find appropriate supply?
• What should be done if a make-or-buy analysis indicates two labor hours daily can be reduced with a convenience food product, and the decision is implemented because money should be saved?
• What document would you most likely find in a vendor handbook under procedures?
• What is an advantage to using a brand for a purchase specification?
• A broad line vendor primarily helps by reducing the number of vendor relationships.
• Purchasing in excessive quantities will result in?
• Which document initiates the procurement after a need is identified?
• What is the first step in a process of purchasing evaluation and improvement?
• Buyers who focus primarily on a product's per-purchase-unit selling price
• Which statement reflects a traditional view of pricing?
• Which term best describes the benefit a firm gains by outperforming its competitors?
• The document used by purchasers to accept a vendor's price is called a what?
• The purchaser has set a par level of 8 cases of lettuce. One case will be used between order and delivery, and 2 cases are currently available. How many cases need to be purchased?
• In the par level example, which quantity is used to adjust the calculation before determining how many to buy?
• Market form indicates how am item is?
• Which term describes alternative products and services?
• Information helpful in evaluating local vendors can come from which source?
• To which vendors should RFPs be sent?
• Which term describes a buyer's ideal starting point in negotiation?
• IQF is an abbreviation used in food preservation to indicate that product pieces are:
• Orders that have been ordered but not yet received are called what?
• The purchasing approach that balances cost and quality is best described as?
• The parstock approach is primarily aimed at maintaining inventory levels across which time frame?
• In centralized purchasing, what document informs purchasing staff that more products are needed?
• Which statement best describes the outcome of the best buyer-vendor relationships?
• Which system component helps ensure accurate ingredient usage by converting menu items to standardized portions?
• Past sales trends are used to forecast which of the following?
• A customer count forecast can be calculated using which formula?
• What type of system does a small business operation use when there is no purchasing department?
• Which document implements an operations quality standard?
• Most products should be stored at what height?
• Parstock level limitation?
• In a purchasing evaluation program, the initial activity is to do what?
• Stock out occurs when an item has been?
• A national buying group is particularly useful for which type of operation?
• Perishable items are items that?
• What is the food cost for one portion of steak (100 percent yield) if a 4 oz serving is used and the steak costs $12.80 per pound?
• Which is an important characteristic for an effective negotiator?
• Which cost metric is used to compare products across orders for price-conscious purchasers?
• IQF stands for which phrase?
• Who typically develops a vendors handbook in a restaurant or foodservice operation?
• Just in time purchasing is designed to do what?
• Which purchasing system involves buying food products in relatively small quantities at a close time to when its needed?
• What must a purchaser do before contacting vendors about a potential purchase?
• Why is it often difficult to evaluate make-or-buy decisions?
• Expediting may be necessary when
• Which type of vendor offers a large selection of relatively few products?
• Information helpful in evaluating the performance of local vendors can come from
• Maintaining quality standards is the most difficult with which item?
• Which concept is a traditional view of pricing?
• A meat item costs $14.36 per pound (AP) and has an edible yield of 72 percent. What is the approximate cost per servable pound?
• What is the recommended number of approved vendors per category?
• To forecast upcoming trends, always look at?