Question 1

The impact of supply management actions on the balance sheet is measured by the:

Accepted Answer

A)  return on investment effect.
B)  return on inventory effect.
C)  inventory turnover effect.
D)  return on assets effect.
E)  profit leverage effect.

Question 2

The profit-leverage effect of supply savings means that:

Accepted Answer

A)  effective price negotiations with a supplier will lower the supplier's profits.
B)  a reduction in purchase spend increases profit more than an equivalent increase in sales.
C)  the buyer gains leverage over suppliers when purchases are increased.
D)  efficient supply management processes will increase profits.
E)  a reduction in money tied up in inventory improves profits.

Question 3

A systems approach to managing the flow of information,materials,and services from tiers of suppliers through the buying organization to tiers of customers is:

Accepted Answer

A)  strategic sourcing.
B)  materials management.
C)  supply chain management.
D)  procurement management.
E)  inventory management.

Question 4

Since labor and other costs greatly exceed outlays for purchased materials and services in most service organizations,supply is of little consequence in most service organizations.

Accepted Answer

A) True 
 B)False

Exam 1: Purchasing and Supply Management

The profit-leverage effect of supply savings means that:

Correct Answer
verified

Since labor and other costs greatly exceed outlays for purchased materials and services in most service organizations,supply is of little consequence in most service organizations.

Correct Answer
verified

A systems approach to managing the flow of information,materials,and services from tiers of suppliers through the buying organization to tiers of customers is:

Correct Answer
verified

The impact of supply management actions on the balance sheet is measured by the:

Correct Answer
verified

Exam 1: Purchasing and Supply Management

The profit-leverage effect of supply savings means that:

Correct AnswerverifiedShow Answer

Since labor and other costs greatly exceed outlays for purchased materials and services in most service organizations,supply is of little consequence in most service organizations.

Correct AnswerverifiedShow Answer

A systems approach to managing the flow of information,materials,and services from tiers of suppliers through the buying organization to tiers of customers is:

Correct AnswerverifiedShow Answer

The impact of supply management actions on the balance sheet is measured by the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified