Name: Chrislove A.

Dequino Section & Date:IIA-ASM/May

07, 2021

Multiple Choices: Write the correct answer at the blank provided. 20pts

1. Which of the following explains the activities required prior to paying a supplier
invoice for goods ordered? ____a______

A. Check invoice against original documents, check for receipt of goods, check for
problems with goods.

B. Check supplier financial capability, check all goods have been used or sold, ask for
discount

C. Check budget holder has authorised the purchase order, wait until the supplier
chases for payment.

D. Find the goods, prepare a requisition form, send an order acknowledgement

2. Which of the following is best definition of the “supply chain”? ______d_________

A. The way in which information passes from user to procurement to supplier

B. The range of suppliers used by a purchasing organisation

C. The types, frequency and organisation of deliveries to the end user

D. The network of organisations and activities involved with the flow and
transformation of goods

3. Which of the following tasks are required in the pre- award phase of the
purchasing cycle? ______a________

A. Identification of needs and producing specification if required

B. Expediting, reviewing progress and processes

C. Reviewing quotations, gaining authorisations and placing orders

D. Assessing supplier performance and checking invoice details if required

4. A buyer is quoted a price of $20 by a supplier for each item purchased. The buyer
negotiates a $2 reduction from supplier. The buyer’s organisation sells the item to
customers for $36._______b________

A. The buying organisation will achieve a 10% profit for each item sold

B. The buying organisation will achieve a mark-up of 100% on each item sold

C. The buying organisation will achieve a mark-up of 50% on each item sold

D. The selling organisation has made a loss of 10% on each item ordered by the buyer

5. Which sequence is most typical of the procurement process? ____a_________

A. Originator to buyer to approver to supplier

B. Supplier to originator to approver to buyer

C. Originator to approver to buyer to supplier

D. Approver to originator to buyer to supplier

E. None of the above

6. A document sent internally within a company to obtain purchased goods and

services, including stock. It tells the purchasing department or manager exactly what
items and services needed. _____c_________

A. Purchase Order

B. Request for Quotation

C. Purchase Requisition

D. Invoice

7. What are the important documents that we need to match during receiving of
goods or services purchased? _____d______________
A. Purchase Requisition, Packing Slip, Vendor Invoice

B. Purchase Requisition, Purchase Order, Quotation

C. Purchase Order, Packing Slip, Vendor Invoice

D. Purchase Order, Packing Slip, Delivery Receipt

8. Buyers make a record of the goods received for bookkeeping and auditing. All
appropriate documents right from purchase requests to approve invoices are stored
in centralised location. ______c____________

A. Inventory Management

B. Receive Goods/ Services

C. Record Keeping

D. Three- Way Matching

9. In the standard warehouse operation procedure who is responsible to prepare the

shipment and deliver at agreed or required delivery date. ______d____________

A. Sourcing

B. Warehouse

C. Planning

D. Vendor

10. Transaction code in SAP that was used to change a purchase order created.
_____b_________

A. ME21N

B. ME22N

C. ME23N

D. ME20

11. They are responsible for the development and implementation of inspection

activities, the detection and resolution of problems, and the delivery of satisfactory
outcomes.______a_________
A. Quality Assurance

B. Planning

C. Sourcing

D. Vendor

E. Warehouse Operations

12. TRUE or FALSE: The buy side of the decision also is referred to as
Outsourcing.____True______

13. TRUE or FALSE: In purchasing success is measured by cost savings, risk, reduction,
and other factors. ___true__________

14. ____request for proposal_____________________________This is calls as the

same thing as call for bids and invitation for Bid.

15. This is the process that ensures that the company meets its legal and ethical
obligations in the acquisition of goods and services by purchase or
lease.______procurement_________________

16. Below are Supplier Accreditation requirements except one:

______c____________

A. DTI Certification

B. BIR Registration

C. HR Policies and Procedure

D. Company Profile

17. In the supplier evaluation process who is responsible in doing the actual
evaluation using the SPEF form._____procurement___________________

18. Provide Three (3) important criteria that you need to evaluate in order to gauge
the performance of your suppliers.
_______cost___________________

_______quality___________________

______innovation____________________

II. Identify if statement is True or False write your answer at the 1st space provided. If
False Underline the word that makes the statement wrong and write the correct
word at the 2nd space provided. 2pts each (20pts)

1. Sourcing is the process of identifying, selecting and developing

suppliers.___true__________, ____________________________

2. In the standard Warehouse operation procedure sourcing is responsible to check

availability & confirm whenever PR is received from
site._____false____________,_____warehouse_________________

3. When you source an item from a global supplier, unit cost and transportation cost
will be low.___false___________, _______high_____________

4. You can only obtain resources by buying them to single or multiple

sources.____true___________, ______________________

5. Common reasons of why purchase requisition is rejected is due to lack of

justification and budget concerns.____true_________,____________________

6. Purchasing team forwards several purchase requisition to vendor with the

intention to receive and compare bids to shortlist the perfect
vendor.____false____________,___request for qotation__________________

7. Key skills in purchasing is relationship- building, negotiation, and

research._____false____________,____procurement____________________

8. You can change any details in a Purchase Order at SAP via transaction code
ME23N.___false_____________,____ME22N__________________

9. A legally binding contract activates right after a vendor accepts a purchase

requisition and acknowledges it._______false____________,_____purchase
order________________

10. Records keeping are not necessary in the whole purchasing process. Since all
transactions is traceable in the system.___false______________,
_______necessary_______________