33:799:301 Study Guide - Quiz Guide: E-Procurement, Purchase Order, OutsourcingExam
DepartmentSupply Chain Management
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● The Profit- Leverage Effect States that a decrease in purchasing expenditures will directly
● The purchasing function is one of the most value- enhancing functions in any organization and
therefore, it is not necessary to periodically monitor the purchasing functions performance against
a set of standards or industry benchmarks
● Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels
● A purchase order is legally binding once issued by the buyer
○ FALSE - its once signed
● Duties, tazes or customs imposed by the host country for imported or exported goods are known
● What is the term that is often used for the acquistion of services?
● Which of the following is not one of the primary goals of purchasing?
○ Increase the supplier base
● Benefits derived from implementing an e-procurement system include all of the following
○ Decentralzing purchasing
● Which of the following would be a good reason to outsource verus make an item?
○ The company lacks the technology or expertise to produce an item
● The Sum of all costs associated with every activity in the supply chain of a product is referred to
○ Total cost of ownership
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