Mnp260 Exam Pack 2026 questions and
answers 100 % verified and guaranteed
for a direct pass
PART A: MNP2601 – PURCHASING MANAGEMENT
(Questions 1–150)
Section A1: Overview of the Purchasing Function (Questions 1–30)
1. Purchasing and supply management is best described as:
A. Only buying materials at the lowest price
B. The management of the organisation’s external resources to ensure continuous
supply
C. A clerical function
D. Only negotiating contracts
Answer: B.
Rationale: Purchasing manages external resources to ensure continuous supply at
optimal value.
2. The primary objective of purchasing is to:
A. Maximise inventory
B. Ensure continuous supply of required goods and services at the best possible value
C. Minimise supplier relationships
D. Only reduce costs
,Answer: B.
Rationale: Purchasing balances supply continuity, quality, and value.
3. Which of the following is a tactical purchasing activity?
A. Developing sourcing strategy
B. Supplier selection and negotiation
C. Board-level governance
D. Long-term supply chain design
Answer: B.
Rationale: Supplier selection and negotiation are tactical.
4. Strategic purchasing focuses on:
A. Day-to-day order placement
B. Long-term supply strategy and supplier relationships
C. Only price negotiation
D. Only inventory counting
Answer: B.
Rationale: Strategic purchasing is long-term and relationship-focused.
5. The purchasing process typically begins with:
A. Placing an order
B. Recognising a need
C. Selecting a supplier
D. Negotiating price
Answer: B.
Rationale: Need recognition initiates the purchasing process.
,6. A purchase requisition is:
A. A supplier invoice
B. An internal document requesting goods or services
C. A delivery note
D. A contract
Answer: B.
Rationale: A requisition is an internal request.
7. A request for quotation (RFQ) is used to:
A. Invite suppliers to submit prices for specified goods
B. Pay suppliers
C. Receive goods
D. Return goods
Answer: A.
Rationale: RFQ invites priced offers.
8. A request for proposal (RFP) is typically used when:
A. Specifications are clear and price is the main criterion
B. The requirement is complex and solutions are sought
C. Only one supplier exists
D. No purchase is needed
Answer: B.
Rationale: RFP seeks solutions for complex needs.
9. A purchase order (PO) is:
A. A formal request to a supplier to deliver specified goods/services
B. An internal requisition
C. A supplier’s invoice
D. A delivery note
, Answer: A.
Rationale: A PO is the formal order to the supplier.
10. Three-way matching compares:
A. PO, receipt, and invoice
B. Only PO and invoice
C. Only receipt and invoice
D. Only requisition and PO
Answer: A.
Rationale: Three-way match ensures consistency among PO, receipt, and invoice.
11. The purchasing function should report to:
A. Only the marketing department
B. A senior executive with cross-functional authority
C. The lowest-level clerk
D. The external auditor
Answer: B.
Rationale: Purchasing needs senior-level authority to be effective.
12. Centralised purchasing means:
A. Purchasing decisions are made by one central unit
B. Each department buys independently
C. Suppliers buy for the firm
D. No purchasing occurs
Answer: A.
Rationale: Centralisation concentrates purchasing authority.
answers 100 % verified and guaranteed
for a direct pass
PART A: MNP2601 – PURCHASING MANAGEMENT
(Questions 1–150)
Section A1: Overview of the Purchasing Function (Questions 1–30)
1. Purchasing and supply management is best described as:
A. Only buying materials at the lowest price
B. The management of the organisation’s external resources to ensure continuous
supply
C. A clerical function
D. Only negotiating contracts
Answer: B.
Rationale: Purchasing manages external resources to ensure continuous supply at
optimal value.
2. The primary objective of purchasing is to:
A. Maximise inventory
B. Ensure continuous supply of required goods and services at the best possible value
C. Minimise supplier relationships
D. Only reduce costs
,Answer: B.
Rationale: Purchasing balances supply continuity, quality, and value.
3. Which of the following is a tactical purchasing activity?
A. Developing sourcing strategy
B. Supplier selection and negotiation
C. Board-level governance
D. Long-term supply chain design
Answer: B.
Rationale: Supplier selection and negotiation are tactical.
4. Strategic purchasing focuses on:
A. Day-to-day order placement
B. Long-term supply strategy and supplier relationships
C. Only price negotiation
D. Only inventory counting
Answer: B.
Rationale: Strategic purchasing is long-term and relationship-focused.
5. The purchasing process typically begins with:
A. Placing an order
B. Recognising a need
C. Selecting a supplier
D. Negotiating price
Answer: B.
Rationale: Need recognition initiates the purchasing process.
,6. A purchase requisition is:
A. A supplier invoice
B. An internal document requesting goods or services
C. A delivery note
D. A contract
Answer: B.
Rationale: A requisition is an internal request.
7. A request for quotation (RFQ) is used to:
A. Invite suppliers to submit prices for specified goods
B. Pay suppliers
C. Receive goods
D. Return goods
Answer: A.
Rationale: RFQ invites priced offers.
8. A request for proposal (RFP) is typically used when:
A. Specifications are clear and price is the main criterion
B. The requirement is complex and solutions are sought
C. Only one supplier exists
D. No purchase is needed
Answer: B.
Rationale: RFP seeks solutions for complex needs.
9. A purchase order (PO) is:
A. A formal request to a supplier to deliver specified goods/services
B. An internal requisition
C. A supplier’s invoice
D. A delivery note
, Answer: A.
Rationale: A PO is the formal order to the supplier.
10. Three-way matching compares:
A. PO, receipt, and invoice
B. Only PO and invoice
C. Only receipt and invoice
D. Only requisition and PO
Answer: A.
Rationale: Three-way match ensures consistency among PO, receipt, and invoice.
11. The purchasing function should report to:
A. Only the marketing department
B. A senior executive with cross-functional authority
C. The lowest-level clerk
D. The external auditor
Answer: B.
Rationale: Purchasing needs senior-level authority to be effective.
12. Centralised purchasing means:
A. Purchasing decisions are made by one central unit
B. Each department buys independently
C. Suppliers buy for the firm
D. No purchasing occurs
Answer: A.
Rationale: Centralisation concentrates purchasing authority.
