PURCHASING MANAGEMENT EXAMINATION
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Purchasing management refers to:
A. Hiring employees
B. Acquiring goods and services for an organization
C. Cooking operations
D. Marketing products
Answer: B
It involves buying goods/services needed for operations.
2. The main objective of purchasing management is to:
A. Increase costs
B. Obtain quality goods at the best price
C. Reduce production
D. Eliminate suppliers
Answer: B
It ensures value-for-money procurement.
3. Purchasing is part of:
A. HR management
B. Supply chain management
C. Cooking systems
D. Accounting only
Answer: B
It is a key SCM function.
4. The purchasing cycle begins with:
,A. Payment
B. Identification of need
C. Delivery
D. Invoice processing
Answer: B
Need recognition starts the process.
5. A purchase requisition is:
A. Sales document
B. Internal request to buy goods
C. Supplier invoice
D. HR form
Answer: B
It initiates procurement.
6. A purchase order (PO) is:
A. HR document
B. Legal document sent to supplier
C. Cooking order
D. Marketing plan
Answer: B
It formalizes the purchase.
7. The procurement process includes:
A. HR hiring
B. Sourcing, ordering, and receiving goods
C. Cooking
D. Marketing
Answer: B
It covers end-to-end buying.
8. The main role of purchasing is to:
, A. Sell goods
B. Ensure continuous supply of materials
C. Increase HR staff
D. Cook food
Answer: B
It ensures material availability.
9. Strategic purchasing focuses on:
A. Daily buying only
B. Long-term supplier relationships
C. Cooking systems
D. HR recruitment
Answer: B
It builds long-term value.
10. Tactical purchasing focuses on:
A. Long-term strategy
B. Short-term buying decisions
C. HR strategy
D. Marketing strategy
Answer: B
It handles daily operations.
11. Supplier selection is based on:
A. Random choice
B. Evaluation criteria
C. HR preference
D. Cooking skills
Answer: B
Selection uses performance criteria.
12. The primary goal of purchasing is:
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Purchasing management refers to:
A. Hiring employees
B. Acquiring goods and services for an organization
C. Cooking operations
D. Marketing products
Answer: B
It involves buying goods/services needed for operations.
2. The main objective of purchasing management is to:
A. Increase costs
B. Obtain quality goods at the best price
C. Reduce production
D. Eliminate suppliers
Answer: B
It ensures value-for-money procurement.
3. Purchasing is part of:
A. HR management
B. Supply chain management
C. Cooking systems
D. Accounting only
Answer: B
It is a key SCM function.
4. The purchasing cycle begins with:
,A. Payment
B. Identification of need
C. Delivery
D. Invoice processing
Answer: B
Need recognition starts the process.
5. A purchase requisition is:
A. Sales document
B. Internal request to buy goods
C. Supplier invoice
D. HR form
Answer: B
It initiates procurement.
6. A purchase order (PO) is:
A. HR document
B. Legal document sent to supplier
C. Cooking order
D. Marketing plan
Answer: B
It formalizes the purchase.
7. The procurement process includes:
A. HR hiring
B. Sourcing, ordering, and receiving goods
C. Cooking
D. Marketing
Answer: B
It covers end-to-end buying.
8. The main role of purchasing is to:
, A. Sell goods
B. Ensure continuous supply of materials
C. Increase HR staff
D. Cook food
Answer: B
It ensures material availability.
9. Strategic purchasing focuses on:
A. Daily buying only
B. Long-term supplier relationships
C. Cooking systems
D. HR recruitment
Answer: B
It builds long-term value.
10. Tactical purchasing focuses on:
A. Long-term strategy
B. Short-term buying decisions
C. HR strategy
D. Marketing strategy
Answer: B
It handles daily operations.
11. Supplier selection is based on:
A. Random choice
B. Evaluation criteria
C. HR preference
D. Cooking skills
Answer: B
Selection uses performance criteria.
12. The primary goal of purchasing is:
