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    Social responsibility a Is another name for Ethics b Extends beyond ethics to include community environment, and human right c. Is another name for supplier diversity programs d. Requires sacrificing financial gain for the greater good of the community e. Refers to individual , not corporate, decisions and actions 2. The Sarbanes-Oxley Act: a. has no impact on the supply management process b. requires the chief Purchasing Officer to sign off on every contract c. Requires supply management to report directly to the Chief Financial Officer d. requires listing off-balance sheet items such as long- term purchase agreements e. affects internal accounting procedures of privately-held companies 3. Electronic or digital signatures for contractual purposes: a. Are valid in all member countries of the United Nations b. Are valid in the US, Canada, and Mexico under the rules of origin of the NAFTA agreement c. Are invalid because there is currently no technological means available to authenticate signatures d. Are invalid in the US because the UCC expressly prohibits them e. Have been given the same legal status as written ones by the European Union (EU), but 4. A valid purchase order Contract is based on four factors. They are: a. An oral agreement, a handshake, an e-mail and a promissory note b. Competent parties, legal subject matter, an offer and an acceptance, consideration c. Competent parties, a personal check, written conditions detailing acceptance of goods, the goods themselves. d. A verbal commitment, a supplier acknowledgement , a fax accepting the goods, a statement in compliance with the UCC requirements e. A verbal agreement between a sales person and an employee of the purchasing company, a fax of the UCC statutes, a signed document from a third party supervising the transaction consideration. 5. WIPO stands for:_____________________________________ 6. Target costing starts with the: a. Price the buyer wants to pay for a good or service b. Cost of materials to make an end product c. Price of final product or service d. Cost of the suppliers inputs e. Total cost of doing business with a supplier 7. A comprehensive commodity study should result in a (n): a. Through an analysis of sources used over time b. Review of past predictions and variances from the actual prices paid c. Strategy to lower cost and assure supply d. Assessment of the performance of the commodity manager e. Trend analysis of volume requirements over time 8. Value analysis compares: a. Function to cost b. Value to cost c. Function to value d. Value to quality e. Cost to quality 9. The most-cited reason for international trade is: a. Better quality b. More advanced technology c. Lower overall costs d. Domestic sources unavailable e. Lower price 10. The governing convention on shipping terms and responsibilities involve in international transportation is called: a. FOB (Free on Board) terms b. EXQ (Ex Quay) c. FCA (free carrier named placed) d. ITAPS (international Transport and Payment Specifications) e. INCOTERMS (international Commercial Terms) 11. Canada and Mexico are the largest trading partners with the US, however since the introduction of NAFTA, trade has dropped off a. True b. False 12. In governmental supply, inventory management is: a. Of little importance since tax dollars are the source of the funds b. Especially important in times of high budget deficits c. Relatively easy to manage given the size of the government entities d. Given the same attention as it is given to the private sector e. The responsibility of the third party providers 13. A military contract in which buyer and seller agree on a target cost figure , a fixed fee, and a formula for sharing cost under-or over-runs, is known as a : a. Firm-fixed price contract b. Cost-plus-fixed-fee contract c. Cost-no-fee contract d. Cost-plus-incentive -fee contract e. Fixed-fee-plus-incentive-contract 14. The emphasis on the bid process in public purchasing: a. Makes it somewhat easier to favor one supplier over another one b. Minimizes the administrative paperwork required c. Tends to put undue weight on price as the basis for supplier selection d. Typically permits the purchase of the material within a very short period of time e. Makes it difficult for smaller supplier to complete 15. An RFP is mandated for professional services or high-tech needs in the public sector a. True b. False 16. Cooperative purchasing can include joint buying and/or a formal, contractual arrangement where several purchasing departments use a separate cooperative buying alliance a. True b. False 17. When purchasing technology, hardware a. Is considered a capital asset and software is intellectual property b. Is always depreciated and software is always expensed c. Typically represents two-thirds or more of the total costs d. Can be purchased but not leased e. Price is the most heavily weighted decision criterion 18. Capital assets are short-term purchases which are bought and sold in the regular course of business a. True b. False 19. It is generally accepted that the purchased price of a capital asset is 3 to 50 percent of the total cost ownership to the organization. a. true b. false 20. Life cycle costing is not an appropriate decision-making approach to capital investments a. True b. False 21. The purchase of used equipment: a. Can never be justified in a well-run organization b. May be considered for use in pilot or experimental plan c. Should only be considered if the price differential between new and used is at least 30 percent. d. Makes sense when the machine will be used continuously e. Should not be considered when time is essential because of the long lead times associated with delivering used equipment. 22. When purchasing construction services a turnkey supplier: a. Relieves the purchaser of substantial subcontract responsibilities and risk b. Normally trains purchaser personnel to work on the project c. Usually has access to capital funds at lower rates on interest than the purchaser d. Usually provides maintenance on all equipment after the project is completed e. Normally finances all phases of the project until it is completed 23. Supply chain management is a systems approach to the managing the entire flow of information, material, and services from raw material s suppliers through factories and warehouses to the end customer a. True b. False 24. To select a potential supplier-partner the buyer should consider: a. Hard factors such as quality, quantity, cost and technology b. Soft factors such as congruence of management values and compatibility c. The wiliness of the supplier to quickly change processes for results d. Both hard and soft factors with an eye toward long-term outcomes e. Both hard and soft factors with an eye toward short-term outcomes 25. An organization must approach strategic planning in three levels, They are Corporate, Unit and Function A. true B. false 

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  1. The comprehensive commodity study should result in a review of past predictions and variances from t
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