SCM 421 ACTUAL VERIFIED EXAM 1 QUESTIONS WITH 100% ACCURATE SOLUTIONS-
GRADED A+
Which of the following is true when comparing the profit impact of sales versus purchasing
efforts?
a. Purchasing efforts don't impact profits
b. A sales dollar is typically more impactful on profit than a dollar saved by purchasing
c. Sales have no impact on profit, only on revenue growth
d. Sales dollars hit the top line (revenues), purchasing savings go straight to operating profit
e. They have the same impact
d. Sales dollars hit the top line (revenues), purchasing savings go straight to operating profit
In looking at Figures 1-6 and 1-7, when purchasing reduces COGS, gross profit goes up.
What else happens?
a. Taxes go down
b. Taxes go up
c. S&A goes up
d. Fixed assets go down
e. Nothing else happens
b. Taxes go up
Which conflict first brought a significant change in how purchasing was perceived?
,a. WWI
b. WWII
c. The Crimean War
d. Gulf War 1
e. The War of the Roses
b. WWII
What can suppliers be a source of?
a. Purchasing personnel should provide competitive intelligence to suppliers
b. Vital innovation
c. Defective inputs that can put your company's products at risk of being defective
d. All of the above
e. A & B only
d. All of the above
The City of Dayton, Ohio uses what policy with regards to disadvantaged suppliers?
a. The city bans all special preferences, no advantage is given to any firm.
b. The city uses the same guidelines as the Federal government
c. Local firms (within city limits) must be awarded 80% of all city contract dollars
d. A local, diverse supplier can win a city contract if it is within 10% of the lowest bid
e. Only suppliers classified as "disadvantaged" are permitted to win city contacts
d. A local, diverse supplier can win a city contract if it is within 10% of the lowest bid
,Where can you look for information on potential suppliers?
a. Your company's database and salesforce
b. Industry contacts
c. Supplier directories and trade magazines
d. The Internet
e. All of the above
e. All of the above
You've been buying a small amount of standard material from a local supplier for 20 years.
The supplier factory suddenly burns down, forcing you to buy the item from a supplier
halfway around the world, with whom you have never done business. What just happened?
a. Your delivery pipeline just got shorter
b. You've just encountered a major technological shift
c. You now have less risk in your supply market
d. Quality will definitely decrease
e. Your routine item has probably become a bottleneck
e. Your routine item has probably become a bottleneck
Which of the following is an indirect material buy?
a. Lumber for framing a house
, b. Whole grains for the cereal factory
c. Safety goggles for the car factory
d. Rubber for the sneaker factory
e. Chemicals for the shampoo factory
c. Safety goggles for the car factory
What's a possible disadvantage of forward-buying inventory in bulk?
a. Prices will be better when buying in bulk
b. There will be plenty of stock when needed
c. You'll be ready for an unexpected upsurge in customer demand
d. There are no disadvantages to forward buying
e. Inventory costs will rise
e. Inventory costs will rise
What are capital goods?
a. Not used in factories
b. Low-dollar, multiple purchases
c. High-dollar, infrequent purchases
d. Short-lived
e. Items which go directly into the final product
c. High-dollar, infrequent purchases
GRADED A+
Which of the following is true when comparing the profit impact of sales versus purchasing
efforts?
a. Purchasing efforts don't impact profits
b. A sales dollar is typically more impactful on profit than a dollar saved by purchasing
c. Sales have no impact on profit, only on revenue growth
d. Sales dollars hit the top line (revenues), purchasing savings go straight to operating profit
e. They have the same impact
d. Sales dollars hit the top line (revenues), purchasing savings go straight to operating profit
In looking at Figures 1-6 and 1-7, when purchasing reduces COGS, gross profit goes up.
What else happens?
a. Taxes go down
b. Taxes go up
c. S&A goes up
d. Fixed assets go down
e. Nothing else happens
b. Taxes go up
Which conflict first brought a significant change in how purchasing was perceived?
,a. WWI
b. WWII
c. The Crimean War
d. Gulf War 1
e. The War of the Roses
b. WWII
What can suppliers be a source of?
a. Purchasing personnel should provide competitive intelligence to suppliers
b. Vital innovation
c. Defective inputs that can put your company's products at risk of being defective
d. All of the above
e. A & B only
d. All of the above
The City of Dayton, Ohio uses what policy with regards to disadvantaged suppliers?
a. The city bans all special preferences, no advantage is given to any firm.
b. The city uses the same guidelines as the Federal government
c. Local firms (within city limits) must be awarded 80% of all city contract dollars
d. A local, diverse supplier can win a city contract if it is within 10% of the lowest bid
e. Only suppliers classified as "disadvantaged" are permitted to win city contacts
d. A local, diverse supplier can win a city contract if it is within 10% of the lowest bid
,Where can you look for information on potential suppliers?
a. Your company's database and salesforce
b. Industry contacts
c. Supplier directories and trade magazines
d. The Internet
e. All of the above
e. All of the above
You've been buying a small amount of standard material from a local supplier for 20 years.
The supplier factory suddenly burns down, forcing you to buy the item from a supplier
halfway around the world, with whom you have never done business. What just happened?
a. Your delivery pipeline just got shorter
b. You've just encountered a major technological shift
c. You now have less risk in your supply market
d. Quality will definitely decrease
e. Your routine item has probably become a bottleneck
e. Your routine item has probably become a bottleneck
Which of the following is an indirect material buy?
a. Lumber for framing a house
, b. Whole grains for the cereal factory
c. Safety goggles for the car factory
d. Rubber for the sneaker factory
e. Chemicals for the shampoo factory
c. Safety goggles for the car factory
What's a possible disadvantage of forward-buying inventory in bulk?
a. Prices will be better when buying in bulk
b. There will be plenty of stock when needed
c. You'll be ready for an unexpected upsurge in customer demand
d. There are no disadvantages to forward buying
e. Inventory costs will rise
e. Inventory costs will rise
What are capital goods?
a. Not used in factories
b. Low-dollar, multiple purchases
c. High-dollar, infrequent purchases
d. Short-lived
e. Items which go directly into the final product
c. High-dollar, infrequent purchases
