FSM FINAL EXAM QUESTIONS AND ANSWERS

What is purchasing? - Answer- the process of securing the right product for a facility at the right time and in a form that meets pre-established standards for quantity, quality, and price At what levels are markets and functions of purchasing regulated? - Answer- Federal, State, and Local levels What is the difference between interstate and intrastate commerce? - Answer- Interstate commerce is financial transactions (buying and selling of goods) carried on between states Intrastate commerce is financial transactions (buying and selling of goods) carried on within state boundaries What is it meant by standards of identity? - Answer- Defines what a food product must contain to be called a certain name (ex: whole fat, reduced fat, and fat free) What items do standards of quality apply to? - Answer- Primarily to canned fruits and vegetables What are national marine and fisheries service responsible for? - Answer- A voluntary inspection system for fish, fish products, and grade standards for some products, What is meant by the ethics of purchasing? - Answer- Buying demands integrity, maturity, negotiation skills, and commitment to a high standard of ethics. Buyers may be subjected to bribes and other kinds of inducements to influence buying decisions. Know the difference between centralized and cooperative purchasing? - Answer- Centralized purchasing is a structure of purchasing in which a department within an organization assumes the main responsibility for the purchasing function Cooperative purchasing is an organization that represents member organizations and oversees their purchasing function What is the difference and product difference between a broad line and a specialty vendor? - Answer- specialty vendors typically carries a limited product line. For example, a specialty vendor may limit its line to only groceries or carry a single commodity such as meat, fish, or produce broadline vendors carry large inventories of food and supplies, representing numerous sp