1.

Activities related to coordinating, controlling and planning activities of flow of inventory are
classified as
a) Decisional management c) Throughput management
b) Inventory management d) Manufacturing management
Ans :b

2. The terms purchasing and procurement should not be seen as synonymous. As such, which of
the
following statements do you think has greatest validity?
a) Procurement is broadly equivalent to purchasing
b) Purchasing has a broader meaning than procurement
c) Procurement has a broader meaning than purchasing
d) None of the above
Ans:c

3. The electronic integration and management of all procurement activities including purchase
request,
authorization, ordering, delivery and payment between a purchaser and supplier is known as:
a) E-procurement system c) E-procurement
b) E-procurement process d) All of the above
Ans:c

4. The range of potential options for improving purchasing processes are indicated by benefits
described by the Chartered Institute of Purchasing and Supply such as:
a) Content management d) Evaluation of end-to-end trading cycles
b) Multimedia e) None of the above
c) All of the above
Ans:c
5. Generally, which is the 1 st Step under purchase process
a) Need for goods c) Purchase Requisition
b) PO Review d) All of the above
Ans:a
6. What are the objective of purchasing
a) Maintain Continuity in supply c) Maintain quality standards
b) Avoid duplications d) All of these
Ans:d

7. Which of the following is true for Inventory control?

a) Economic order quantity has minimum total cost per order
b) Inventory carrying costs increases with quantity per order
c) Ordering cost decreases with lo size
d) All of the above
Ans:d

8. Which of the following are functions of the purchasing organization?

a. Negotiate general conditions of purchase with vendors
b. Set pricing conditions
c. Represents an independent accounting unit
d. Responsible for purchasing for a specific group of materials
e. Legally responsible for completing purchasing contracts
Ans: a, e

9. Which of the following are item categories on purchase orders?

a. Asset b. Standard c.Consignment
d. Cost Center e. Sales Order f. Third party
Ans : b, c , f

10. Production related procurement refers to the purchasing of

a) Information System c) Furniture
b) Raw materials d) Office Supplies
Ans: b

11. ------------- make vendor as reference, then there will be invoicing party, supplying part, etc.,
a) Partner Function c) Business Partner
b) Customer Function d) Stake holders
Ans: a

12. In DRM, you can selectively implement new functions or enhance existing ones by activating
business functions. In this context, which of the following are true?
a) SAP Supplier Relationship Management provides a single step activation process.
b) Business functions are activated using the BLW switches
c) A business functions once activated can be deactivated under certain conditions
d) B and C
Ans: d

13. SAP SRM provides predefined technical events for business objects. Events can be triggered
by any of the following:
a) Business changes made in the system c) Key Performance Indicators
b) The results of report run d) None of the above.
Ans: d
14. True or False: The terms Supplier Relationship Management (SRM) and Enterprise Buyer
(EBP) are the same, and can be used interchangeably.?
 a) True b) False
Ans: b

15. Which of the following is not a standard scenario available for SRM
a) Self Service Procurement c) Service Procurement
b) Plan Driven Procurement d) Extended Classic Scenario
Ans: d

16. What elementary step(s) is/are associated with workflow customizing in SRM?
a) The workflows to be used have to first be activated in customizing.
b) Workflow start conditions need to be configured by business objects
c) The IMG activity, “Maintain Standard Settings for SAP Business Workflow” can be configured
by any
user with access to this transaction.
d) a and b
Ans: d

17. Which statement(s) concerning master data in SRM is/are correct?

a) Material Master Data is transferred from the SAP backend to EBP using middleware.
b) Product Categories correspond to material groups in the SAP backend.
c) Business partner master records correspond to the vendor master records in the SAP
backend.
d) All of the above.
Ans: d

18. Which is part of material management

a) Inventory Management c) Both A & B
b) Marketing Management d) None
Ans: a

19. ____ department floats enquiries and processes quotations

a) Sales budget c) Purchase
b) Production d) Inventory
Ans: c

20. _________ is a detailed list of movable items which are required for manufacturing
products and maintaining the equipment and machines in good working order.
a) Inventory c) Purchase
b) Production d) None of these
Ans: a

21. Inventory Consists of -----------

a) Raw material c) Finished Products
b) Work in progress d) All of these
Ans: d

22. _____________________ inventory includes purchase of raw material, semi-finished

components,standard components or/and subassemblies from suppliers.
a) Raw Material c) Finished Product
b) Work in process d) Indirect
Ans: a

23. _________ inventory includes the finished products lying in the warehouse and waiting for
dispatch.
a) Finished product c) In-process
b) Raw material d) Indirect
Ans: a

24. ________ inventory consists of semi-finished components.

a) Finished product c) Indirect
b) Raw material d) In-process
Ans: b

25. The intention of purchasing is ___________.

a) To procure wrong material c) To procure material in high material
b) To ensure quality of purchased material d) To procure material at high price
Ans: b

26. Which of the following is not an inventory?

a. Machines c. Finished products
b. Raw material d. Consumable tools
Ans: a

27. The following classes of costs are usually involved in inventory decisions except
a. Cost of ordering c. Cost of shortages
b. Carrying cost d. Machining cost
(Ans:d)

28. The cost of insurance and taxes are included in

a. Cost of ordering c. Inventory carrying cost
b. Set up cost d. Cost of shortages
(Ans:c)
29. ‘Buffer stock’ is the level of stock
a. Half of the actual stock.
b. At which the ordering process should start
c. Minimum stock level below which actual stock should not fall
d. Maximum stock in inventory
(Ans:c)

30) An account payable is posted to accounting upon creation of the following document

a. Purchase Requisition
b. Purchase Order
c. Good Receipt
d. Invoice verification
e. All of the above

Ans: d

31) Which of the following are functions of the purchasing organization?

a. Negotiate general conditions of purchase with vendors
b. Set pricing conditions
c. Represents an independent accounting unit
d. Responsible for purchasing for a specific group of materials
e. Legally responsible for completing purchasing contracts
Ans: a, e