Purchasing and Supply Management, 16e (Johnson)
Chapter 1 Purchasing and Supply Management
1) Supply decisions can affect:
A) the balance sheet.
B) the income statement.
C) the income statement and the balance sheet.
D) neither the income statement nor the balance sheet.
E) none of the financial metrics.
Answer: C
Difficulty: 2 Medium
Topic: Size of organizational spend and financial significance
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
2) On average, the dollars spent with suppliers as a percent of revenues:
A) is greater in manufacturing organizations than in service organizations.
B) is about equal in service and manufacturing organizations.
C) is greater in service organizations than in manufacturing organizations.
D) depends on the type of manufacturing process.
E) depends on the type of service delivery system.
,Answer: A
Difficulty: 1 Easy
Topic: Size of organizational spend and financial significance
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
,3) The role of supply management is best captured by the following question:
A) How can supply help suppliers decrease costs?
B) How can supply and suppliers help decrease costs and increase revenues?
C) How can supply and suppliers help decrease costs?
D) How can supply help decrease costs and increase revenues?
E) How can supply help decrease costs?
Answer: B
Difficulty: 2 Medium
Topic: Supply contribution
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
4) To contribute to organizational strategy, the supply department should:
A) set realistic expectations for internal customers.
B) execute tasks as designed.
C) standardize and automate transactions.
D) streamline business processes.
E) seek opportunities to provide competitive advantage.
Answer: E
Difficulty: 2 Medium
Topic: Supply contribution
, Bloom's: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
5) The impact of supply management actions on the balance sheet is measured by the:
A) return on investment effect.
B) return on inventory effect.
C) inventory turnover effect.
D) return on assets effect.
E) profit leverage effect.
Answer: D
Difficulty: 1 Easy
Topic: Return-on-assets effect
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
Chapter 1 Purchasing and Supply Management
1) Supply decisions can affect:
A) the balance sheet.
B) the income statement.
C) the income statement and the balance sheet.
D) neither the income statement nor the balance sheet.
E) none of the financial metrics.
Answer: C
Difficulty: 2 Medium
Topic: Size of organizational spend and financial significance
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
2) On average, the dollars spent with suppliers as a percent of revenues:
A) is greater in manufacturing organizations than in service organizations.
B) is about equal in service and manufacturing organizations.
C) is greater in service organizations than in manufacturing organizations.
D) depends on the type of manufacturing process.
E) depends on the type of service delivery system.
,Answer: A
Difficulty: 1 Easy
Topic: Size of organizational spend and financial significance
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
,3) The role of supply management is best captured by the following question:
A) How can supply help suppliers decrease costs?
B) How can supply and suppliers help decrease costs and increase revenues?
C) How can supply and suppliers help decrease costs?
D) How can supply help decrease costs and increase revenues?
E) How can supply help decrease costs?
Answer: B
Difficulty: 2 Medium
Topic: Supply contribution
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
4) To contribute to organizational strategy, the supply department should:
A) set realistic expectations for internal customers.
B) execute tasks as designed.
C) standardize and automate transactions.
D) streamline business processes.
E) seek opportunities to provide competitive advantage.
Answer: E
Difficulty: 2 Medium
Topic: Supply contribution
, Bloom's: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
5) The impact of supply management actions on the balance sheet is measured by the:
A) return on investment effect.
B) return on inventory effect.
C) inventory turnover effect.
D) return on assets effect.
E) profit leverage effect.
Answer: D
Difficulty: 1 Easy
Topic: Return-on-assets effect
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
