ISM C.P.M. Module 1: Purchasing Process - 630-005 Exam Practice Test

A. Systems contracts.

B. Construction contracts.

C. Very high dollar value purchases.

D. Blanket orders.

A. Supplier invoices may be eliminated by using disbursement reports on items taken from consignment inventory.

B. The supplier is responsible for identifying shipped goods as consignment goods and must keep them separate fromnonconsignment goods in the buyer's inventory.

C. The supplier normally determines minimum and maximum stocking levels.

D. The buyer pays only for goods removed from consignment, regardless of the length of time goods remain available for use.

A. Renegotiation.

B. Litigation.

C. Compromise.

D. Reformation.

A. Preparing and reproducing specifications.

B. Awarding the contract.

C. Expediting deliveries.

D. Receiving and reviewing bids.

A. Alternate proposals.

B. Restricted competition.

C. Two-step bidding.

D. Competitive proposals.

A. Production plan.

B. Internal customer order.

C. Bill of material.

D. Commitment of funds.

A. Preferred suppliers emphasize acquisition costs over total costs.

B. Preferred suppliers find ways to enhance their products.

C. Preferred suppliers warn the customer in advance of factors that may affect the purchaser's operations.

D. Preferred suppliers take the initiative in suggesting better ways to serve the customer.

A. Use a manual order system for all future orders with the supplier.

B. Accept the parts with no further comment.

C. State that an implied warranty for merchantability is applicable to the parts.

D. Accept the parts and write a contract covering the supplier's obligations in future online transactions.

A. The seller makes all arrangements for shipment.

B. The title transfers to the buyer on receipt of goods.

C. The cost of transportation is included in the price.

D. The shipment is insured against loss or damage.

A. Quickly contact potential suppliers to determine availability of the new generator.

B. Insist that the plant manager submit a properly approved and funded requisition for the new generator.

C. Contact the repair company to determine the extent of the existing generator's problems before taking any action.

D. Determine the current cost of the new generator and additional costs related to short-time- interval ordering, expediting, and premium transportation.

A. Notifying suppliers in writing of minor nonconformance.

B. Assisting in establishing negotiating strategies.

C. Identifying purchaser's rights and remedies in the event the supplier breaches.

D. Writing commercial and legal terms for the contract.