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. 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)
Unit Total Cost
Types of solicitation bids
Request for Information (RFI)
2. 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
Landed Cost
Cooperative purchasing
Return on Investment (project based - more complicated)
Carryi
3. Cost associated with having material on hand - two main ones. Ownership and taxes.
Methods of communicating attributes of a product or service
Return on assets employed (ROAE)
Ownership cost
Landed Cost
4. When evaluating services - do not look at the cost of the services - look at if it reduces total cost to the process or organization.
Request for Information (RFI)
Total cost of performance for services
Indirect - Fixed Cost
Margin Analysis
5. The simplest to calculate and assumes that a machines depreciation is related to function of time not it's use.
Straight line depreciation
Return On Investment (ROI)
Indirect - Variable Cost
Types of solicitation bids
6. Measures how effectively the organization is using the assets involved in a particular project. ROAE = (Net Income + Interest Expense After Tax) /Average Capital Employed.
Return On Investment (ROI)
Total Cost of Ownership (TCO)
Landed Cost
Return on assets employed (ROAE)
7. 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.
Statement of Work (SOW)
Lead division buying
Total cost of performance for services
Life-Cycle cost
8. Annual Operating Income / Total Capital Invested
Ownership cost
Lead division buying
Cooperative purchasing
Return On Investment (ROI)
9. Are those cost that have both a fixed and variable cost component. such as supervisors salaries - pensions plans - utilities - and fuel.
Cooperative purchasing
Total cost of performance for services
Types of solicitation bids
Indirect - semi-variable cost
10. With having material on hand is obsolesces - theft - damage and shrinkage.
Declining balance Depreciation
Indirect - Variable Cost
Risk cost
Return On Investment (ROI)
11. 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.
Types of solicitation bids
Finance cost
Total Cost of Ownership (TCO)
Sum of Years Digits Depreciation
12. 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
Indirect Cost
Cooperative purchasing
Ownership cost
Methods of communicating attributes of a product or service
13. ROI = Net Present Value of Cash flows from the Project / Total Capital Invested in the Project.
Sum of Years Digits Depreciation
Return on Investment (project based - more complicated)
Return on total assets (ROTA)
Statement of Work (SOW)
14. 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.
Unit Total Cost
Declining balance Depreciation
Methods of communicating attributes of a product or service
Types of solicitation bids
15. 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
Lead division buying
Direct Cost
Indirect Cost
Margin Analysis
16. 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.
Types of solicitation bids
Life-Cycle cost
Finance cost
Landed Cost
17. 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.
Life-Cycle cost
Unit Total Cost
Landed Cost
Statement of Work (SOW)
18. 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.
Cooperative purchasing
Carryi
Lead division buying
Sum of Years Digits Depreciation
19. Investigates the profitability of an organization in relation to it's sales. Net operating margin expresses profitability as a ratio of income to sales.
Sum of Years Digits Depreciation
Return on Investment (project based - more complicated)
Indirect - semi-variable cost
Margin Analysis
20. Total Operating Income / Total Sales
Carryi
Risk cost
Indirect - Fixed Cost
Net Operating Margin
21. 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.
Unit Total Cost
Total cost of performance for services
Request for Information (RFI)
Risk cost
22. 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 -
Lead division buying
Indirect - Fixed Cost
Total cost of performance for services
Straight line depreciation
23. 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
Risk cost
Weighted average cost of capital formula
Indirect Cost
Centralized Buying
24. 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
Risk cost
Centralized Buying
Life-Cycle cost
Statement of Work (SOW)
25. 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.
Declining balance Depreciation
Cooperative purchasing
Landed Cost
Request for Information (RFI)
26. 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
Request for Information (RFI)
Indirect Cost
Lead division buying
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.
Declining balance Depreciation
Return on Investment (project based - more complicated)
Cooperative purchasing
Landed Cost
28. 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.
Net Operating Margin
Indirect Cost
Risk cost
Straight line depreciation
29. 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.
Carryi
Consortia
Indirect - Variable Cost
Indirect Cost
30. 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.
Types of solicitation bids
Landed Cost
Indirect Cost
Cooperative purchasing
31. 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.
Indirect Cost
Centralized Buying
Unit Total Cost
Life-Cycle cost
32. 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
33. 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.
Direct Cost
Consortia
Return on Investment (project based - more complicated)
Life-Cycle cost