SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Certified Professional In Supply Management
Start Test
Study First
Subjects
:
certifications
,
business-skills
Instructions:
Answer 33 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Two or more organizations (public or private) that join together to combine spend for common commodities. Members are usually active in the purchasing decisions even if a 3rd party makes the purchases for them.
Request for Information (RFI)
Straight line depreciation
Bidder's Conferences
Consortia
2. The combination of the purchase or acquisition price of a good or service and any additional cost incurred before or after the product or service delivery.
Statement of Work (SOW)
Margin Analysis
Total Cost of Ownership (TCO)
Cooperative purchasing
3. 1. Offer to buy vs Offer to sell - 2. Informal bid/quotation - 3. Electronic solicitations (RFx) - 4. Competitive proposals - 5. Sealed bids / formal advertising - 6. Restricted competition - 7. Non-competitive negotiations - 8. Two step bidding - 9.
Types of solicitation bids
Return on assets employed (ROAE)
Carryi
Indirect Cost
4. Return on total assets measures how effectively the organization is using the entirety of assets. ROTA = Net Income / Total Assets
Return on total assets (ROTA)
Sum of Years Digits Depreciation
Life-Cycle cost
Indirect - Variable Cost
5. Investigates the profitability of an organization in relation to it's sales. Net operating margin expresses profitability as a ratio of income to sales.
Weighted average cost of capital formula
Methods of communicating attributes of a product or service
Margin Analysis
Straight line depreciation
6. Used for more complex biding situations and detailed information where dialog w/ buyer and supplier are required with engineering and supplier. Potential problems is the time it takes to conduct.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
7. The total cost of one unit of goods or services. It includes purchase price plus all other cost associated with the item or service over it's useful life - including other direct cost - policy costs and cost of non-performance.
Unit Total Cost
Return On Investment (ROI)
Methods of communicating attributes of a product or service
Bidder's Conferences
8. Expenses that can be identified with individual units of output - typically direct materials and direct labor. Important for several reasons: 1. Direct cost have largest impact on supplier prices. 2. Reduced direct cost give bigger savings than reduc
Types of solicitation bids
Indirect - Variable Cost
Direct Cost
Risk cost
9. Is an profit or non-profit company that serves members in a single industry such as hospitals - Universities or country governments. Co-op members play NO role in the management of the co-ops activities - but can suggest suppliers.
Bidder's Conferences
Return On Investment (ROI)
Cooperative purchasing
Landed Cost
10. Cost associated with having material on hand - two main ones. Ownership and taxes.
Total cost of performance for services
Ownership cost
Risk cost
Unit Total Cost
11. What is the cost of capital to finance the inventory. Two ways to get the cost. One - use the companies short-term borrowing rate. or 2. The company's required rate of return on an investment.
Finance cost
Indirect Cost
Risk cost
Weighted average cost of capital formula
12. ROI = Net Present Value of Cash flows from the Project / Total Capital Invested in the Project.
Total cost of performance for services
Return on Investment (project based - more complicated)
Declining balance Depreciation
Bidder's Conferences
13. Total Operating Income / Total Sales
Net Operating Margin
Indirect - semi-variable cost
Consortia
Indirect Cost
14. Are those cost that change proportionately with the volume of production of goods or the performance of services. i.e.: direct material cost and direct labor cost.
Indirect - Fixed Cost
Ownership cost
Return on total assets (ROTA)
Indirect - Variable Cost
15. X = Type of capital; Y = Total Capital; Z =the interest rate (cost) or each type of capital; S=sum. Example: Long term debt = 400K (capital type) Preferred stock = 300K (capital type) Total = 700K Financing cost: LTD: 6.2% PS: 10.5% Equation: 1. Deb
Landed Cost
Weighted average cost of capital formula
Ownership cost
Finance cost
16. Measures how effectively the organization is using the assets involved in a particular project. ROAE = (Net Income + Interest Expense After Tax) /Average Capital Employed.
Weighted average cost of capital formula
Return on assets employed (ROAE)
Margin Analysis
Life-Cycle cost
17. Are those cost that tend to remain constant regardless of the volume of operating activity. They decrease as a cost per unit when output is high - assigned to departments through cost allocation methods. Think: Rent - property taxes -
Landed Cost
Consortia
Indirect - Fixed Cost
Return on total assets (ROTA)
18. Are information request not binding on either party. Results are usually in the form of price list or catalogs and helps supplier in budgeting process. Potential draw backs - is that RFI's are overused and supplier may not respond.
Direct Cost
Types of solicitation bids
Centralized Buying
Request for Information (RFI)
19. Is an organizational policy and structure in which the authority and responsibility for most supply related functions and decisions are assigned to a central organization. Decisions are made in one spot - not all people are necessarily located in one
Return on Investment (project based - more complicated)
Methods of communicating attributes of a product or service
Indirect Cost
Centralized Buying
20. Where one division is the primary user of a commodity - product - or service so it negotiates the contracts for the entire company (other divisions).
Consortia
Lead division buying
Bidder's Conferences
Declining balance Depreciation
21. With having material on hand is obsolesces - theft - damage and shrinkage.
Bidder's Conferences
Sum of Years Digits Depreciation
Indirect - Variable Cost
Risk cost
22. Takes the number of years of useful life of an asset - counts back to one - and adds the digits together. This method depreciates more in the first few years of an asset than the others.
Direct Cost
Types of solicitation bids
Return on total assets (ROTA)
Sum of Years Digits Depreciation
23. Are those cost that have both a fixed and variable cost component. such as supervisors salaries - pensions plans - utilities - and fuel.
Ownership cost
Return on Investment (project based - more complicated)
Indirect - semi-variable cost
Indirect - Variable Cost
24. Is a spec for service to be performed. Two components. 1. defines what product must look like or do and 2. quantitative to measure performance.
Request for Information (RFI)
Unit Total Cost
Statement of Work (SOW)
Landed Cost
25. Are any cost not directly identified with specific products or services but related to the normal operation of an co. AKA 'Overhead' & are composed of fixed cost - variable cost - & semi-variable cost.
Indirect Cost
Declining balance Depreciation
Total cost of performance for services
Total Cost of Ownership (TCO)
26. A) Performance & design specs - define what the product or service must do. Often used with capital equip & services. Performance spes. gives supplier the most control over how to satisfy the requirement. Design Specs gives buyer most control. B) Int
Return on assets employed (ROAE)
Lead division buying
Methods of communicating attributes of a product or service
Indirect Cost
27. Is the total accumulation of costs for an imported item - including purchase price plus freight - handling - duties - customs clearance and storage to a designated point.
Margin Analysis
Landed Cost
Unit Total Cost
Consortia
28. Multiplying the book value by the constant depreciation rate at the end of each fiscal period. Assumes matching has a higher value at beginning of life than ant end and matches Depreciation with that assumption.
Return On Investment (ROI)
Consortia
Declining balance Depreciation
Indirect Cost
29. Annual Operating Income / Total Capital Invested
Statement of Work (SOW)
Cooperative purchasing
Return On Investment (ROI)
Declining balance Depreciation
30. Also called inventory holding cost - are the costs associated with having inventory available - including the opportunity of invested funds - storage and handling cost; and taxes - insurance - shrinkage and obsolescence-risk cost. Four components of
Risk cost
Return on assets employed (ROAE)
Carryi
Direct Cost
31. Is a cost-analysis tool that incorporates the purchase price of equipment and all operating and related costs over the life of the item; including but not limited to maintenance - downtime - energy cost and salvage value.
Sum of Years Digits Depreciation
Life-Cycle cost
Return On Investment (ROI)
Ownership cost
32. When evaluating services - do not look at the cost of the services - look at if it reduces total cost to the process or organization.
Return on Investment (project based - more complicated)
Total cost of performance for services
Bidder's Conferences
Return on total assets (ROTA)
33. The simplest to calculate and assumes that a machines depreciation is related to function of time not it's use.
Total cost of performance for services
Straight line depreciation
Landed Cost
Life-Cycle cost