C.P.M. Module 1: Purchasing Process
Questions, Answers, Braindumps (630-005)
the foundation exam yesterday. All the questions were
from www.exams.ws study material. I got 90 % marks.
That’s sufficient for me. I am satisfied with
I hereby submit some questions.
I hope it helps
Abc .com has a 10% profit margin before taxes and
spends 50% of its sales dollar on materials. What
percentage reduction in material costs for Abc .com
to achieve an increase of 5% in sales?
Which of the following statements regarding the process
of reviewing supplier samples and/or demonstrations
with user departments and functional departments such
as quality, engineering, research, and administration,
A. It increases the amount of time involved in making
a buying decision.
B. It is an example of purchasing's role as a service
function within the organization.
C. It reduces purchased prices by allowing purchasing
to make the final buying decision.
D. It leads to improved quality because the supplier
will have a better understanding of user requirements.
In which of the following countries outside of the
United States do U.S. patentees enjoy protection against
A. In countries that have full diplomatic relations
with the United States.
B. In countries that are signatories to patent conventions
C. In European Union member counties only.
D. In GATT member countries only.
E. None of the above.
Abc .com has a contract with Road Haulers, Ltd. to
dispose of toxic material at a site in New Orleans.
However, Road Haulers, Ltd. decides to use a site
in Dallas instead. The site at Dallas is a cheaper
but disreputable source. Who has primary liability
in this situation?
A. Abc .com.
B. Road Haulers, Ltd.
C. The site at New Orleans.
D. The site at Dallas.
Which of the following is the MOST important aspect
of service contract administration?
A. Aggressive management of the contract.
B. Selection of the right source.
C. A fair and reasonable price.
D. A sound statement of work.
You work as a purchaser at Abc .com. Your brother
works as an engineer for a major supplier for Abc
.com. Your brother asks you for input on a new product
line that his company is developing. The product is
quite similar to one that Abc .com currently buys
from another company. Which of the following is the
PRIMARY ethical issue that arises in this situation?
D. Conflict of interest
From which of the following are prices requested from
in the second step of two-step bidding?
A. All suppliers submitting acceptable technical proposals
in the first step.
B. The three suppliers submitting the best proposals
in the first step.
C. All suppliers qualified to submit proposals in
the first step.
D. All suppliers submitting proposals in the first
Which of the following is generally NOT included in
the cost analysis process?
A. Semi-variable costs.
B. Overhead costs.
C. Indirect costs.
D. Sunk costs.
Which of the following is MOST likely to assure receipt
of materials against the invoice from the supplier?
A. The Receiving Department.
B. The Production Department.
C. The Purchasing Department.
D. The Accounts Payable Department.
You work as a buyer at Abc .com. You place an online
order containing only price, quantity, and description.
You do NOT have a written contract with the supplier.
The parts fail inspection, and the supplier claims
it is under no obligation for the parts. What would
be your FIRST line of action in this situation?
A. Accept the parts and write a contract covering
the supplier's obligations in future online transactions.
B. State that an implied warranty for merchantability
is applicable to the parts.
C. Use a manual order system for all future orders
with the supplier.
D. Accept the parts with no further comment.
Which of the following should the buyer FIRST do when
a using department requests that the buyer purchase
a specific brand-name product?
A. Attempt to negotiate a lower price with the supplier
of the brand-name product.
B. Attempt to persuade the user to furnish performance
C. Search for competitive suppliers that furnish similar
D. Appeal the request to higher purchasing management.