C.P.M. Module 1: Purchasing Process Practice Test

630-005 Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Exam Specification:

- Exam Name: 630-005 C.P.M. Module 1: Purchasing Process
- Exam Code: 630-005
- Exam Duration: Varies (typically around 90-120 minutes)
- Exam Format: Multiple-choice questions

Course Outline:

1. Introduction to Purchasing
- Understanding the role and importance of purchasing in an organization
- Exploring the key objectives and responsibilities of the purchasing function
- Examining the impact of effective purchasing on organizational performance

2. Purchasing Process Overview
- Understanding the stages and components of the purchasing process
- Exploring the various steps involved in purchasing goods and services
- Identifying key considerations and best practices at each stage of the process

3. Sourcing and Supplier Selection
- Conducting supplier market research and analysis
- Developing supplier selection criteria and evaluating potential suppliers
- Managing the supplier selection process and negotiating contracts

4. Purchase Order Processing
- Creating and managing purchase orders
- Coordinating with internal stakeholders and suppliers for order fulfillment
- Tracking and managing purchase order status and delivery

5. Supplier Performance Management
- Monitoring and evaluating supplier performance
- Establishing supplier performance metrics and benchmarks
- Implementing strategies to improve supplier performance and relationships

6. Legal and Ethical Considerations
- Understanding legal and regulatory requirements in purchasing
- Ensuring compliance with ethical standards and codes of conduct
- Managing risks and mitigating legal and ethical issues in purchasing

Exam Objectives:

1. Demonstrate understanding of the role and importance of purchasing in an organization.
2. Describe the stages and components of the purchasing process.
3. Apply best practices for sourcing and supplier selection.
4. Demonstrate proficiency in creating and managing purchase orders.
5. Implement strategies for supplier performance management.
6. Understand legal and ethical considerations in purchasing.

Exam Syllabus:

The exam syllabus covers the following topics (but is not limited to):

- Introduction to Purchasing
- Purchasing Process Overview
- Sourcing and Supplier Selection
- Purchase Order Processing
- Supplier Performance Management
- Legal and Ethical Considerations

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ISM
630-005
C.P.M. Module 1: Purchasing Process
https://killexams.com/pass4sure/exam-detail/630-005
Answer: B
QUESTION: 199
Which of the following would be used to resolve buyer/seller disputes related to
global shipping and packaging?
A. World Trade Organization (WTO)
B. General Agreement on Tariffs and Trade (GATT)
C. North American Free Trade Agreement (NAFTA)
D. Convention on Contracts for the Sale of Goods (CISG)
Answer: D
QUESTION: 200
Which of the following is likely to obligate to a fiduc iary responsibility?
A. Power.
B. Negotiation.
C. Commitment.
D. Functional authority.
Answer: D
QUESTION: 201
For which of the following is credit card purchases the MOST appropriate?
A. Periodic services.
B. Commodity items.
C. Low-dollar purchases.
D. Low-volume purchases.
Answer: C
QUESTION: 202
Which of the following would generally NOT be accepted methods of payment for
goods acquired through international procurement?
A. C.O.D.
61
B. Letters of credit.
C. Payment after receipt and inspection.
D. Payment upon receipt of documented evidence of shipment.
Answer: A
QUESTION: 203
has placed an orde r that called for delivery to be F.O.B. Shipping Point,
with Freight Allowed to Destination. On delivery the purchasing manager discovers
that the material was damaged in transit. What should the purchasing manager do?
A. File a claim with the transportation company for repair and replacement costs.
B. Notify the supplier and request that it file the claim and reship the material.
C. Have repairs made to the material and backcharge the supplier.
D. Refuse to accept the shipment and reorder the material.
Answer: A
QUESTION: 204
Which of the following BEST defines the concept of "sharp" buying practices?
A. Negotiating with more than one supplier.
B. Developing a supplier alliance for strategic materials.
C. Misleading a supplier about the actual quantity that the buyer intends to purchase.
D. Reporting verified information about a supplier's financial problems to
management.
Answer: C
QUESTION: 205
On which of the following do most state and local governments establish a supplier
base?
A. Bidders lists.
B. Pre-bid conferences.
C. Interactions between purchasing and the supplier.
D. Interactions between the using department and the supplier.
62
Answer: A
QUESTION: 206
Which of the following is LEAST likely to result from a supplier dealing directly with
several user departments within ?
A. Confusion and uncertainty.
B. Lower total acquisition costs.
C. Bureaucratic problems for purchasing.
D. Increased supplier knowledge about the organization.
Answer: B
QUESTION: 207
Which piece of legislation is designed to prevent monopolies by outlawing
discrimination in pricing due to conspiracies or combinations that act in restraint of
trade?
A. The Clayton Act.
B. The False Claims Act.
C. The Davis-Bacon Act.
D. The Robinson-Patman Act.
Answer: A
QUESTION: 208
has won a grant from the federa l government to construct and operate a
standard weather observation station and equipment structure. On the basis of which
of the following would the construction contract for the weather observation station
and equipment structure be awarded?
A. Letter of intent.
B. Directors' decision.
C. Competitive sealed bid.
D. Competitive sealed proposal.
E. Student design and build competition.
Answer: C
63
QUESTION: 209
You work as a buyer at . You have responsibility for the purchase of
capital equipment. You receive an emergency call from the plant manager, requesting
the purchase of a special generator that costs $100,000. The existing generator is old
and causing problems, and the repair company can no longer guarantee future repairs.
Normal leadtime for delivery of the special generator is 20 weeks. However, the plant
manager has requested delivery of the new generator within 30 days. Which of the
following should you do FIRST?
A. Insist that the plant manager submit a properly approved and funded requisition for
the new generator.
B. Determine the current cost of the new generator and additional costs related to
short-time-interval ordering, expediting, and premium transportation.
C. Contact the repair company to determine the extent of the existing generator's
problems before taking any action.
D. Quickly contact potential suppliers to determine availability of the new generator.
Answer: D
64
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