C.P.M. Module 4: Management Practice Test

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B. Provide immediate feedback, focusing on tasks.
C. Allow the employee time to correct the problem.
D. Advise the employee of the organization's disciplinary process.
Answer: A
QUESTION 234
Which of the following is MOST likely to be included in a corrective action plan that
results from an audit of the purchasing process?
A. Established timeframes, prioritization, and cost/benefit analyses.
B. Recommendations for improvement and penalties for failure.
C. A statement of facts and a response from purchasing.
D. An analysis of costs related to problem resolution.
Answer: A
QUESTION 235
Which of the following was the first to declare discrimination on the basis of race, color,
or sex in hiring, firing, or promotion as being illegal?
A. The 1972 Equal Employment Opportunity Act.
B. The 1971 Griggs vs. Duke Power Decision.
C. The 1964 Civil Rights Act.
D. Executive Order 11246.
Answer: C
QUESTION 236
Which of the following would generally NOT be included in strategic conditions that
imply high risk and the importance of contingency planning?
A. Extensive customer influence on purchasing.
B. Numerous purchasers for supplier products.
C. Numerous substitute products.
78
D. Extensive supplier power.
Answer: C
QUESTION 237
Which of the following do NOT use past experience to determine future needs in the
establishment of operating budgets?
A. Budgeting accountability.
B. Decentralized budgets.
C. Zero-based budgets.
D. Line item budgets.
Answer: C
QUESTION 238
Why is managing and evaluating a buyer's performance especially difficult?
A. Buyers usually resist controls.
B. Buyers change jobs frequently.
C. Buyers can exert little influence on prices.
D. Buyers have responsibilities that are difficult to measure.
Answer: D
QUESTION 239
You work as a purchasing manager at . A buyer who has been at
for the past 12 years, the last five of which were spent in purchasing,
confronts you, and states that she believes her pay raises have not reflected her
work performance. The buyer blames the problem on her immediate supervisor, the
Senior Buyer, whom she believes is acting out of racial prejudice. Which of the
following would be your BEST course of action at this point?
A. Confront the Senior Buyer and determine if he indeed has such prejudices.
B. Request that the human resources department review the situation.
79
C. Review the buyer's performance reports and pay increase history.
D. Process a 10% pay increase for the buyer.
Answer: B
QUESTION 240
"Gifts, loans, unusual hospitality, or any other item of monetary value that could
influence actions, or give the appearance of being capable of influencing actions,
should not be accepted or solicited, even indirectly." What is the above statement an
example of?
A. A rule.
B. A policy.
C. A procedure.
D. An objective.
Answer: B
QUESTION 241
Which of the following is NOT would not be reviewed in a typical procedure for
effective invoice auditing?
A. Invoice.
B. Purchase order.
C. Bill of materials.
D. Receiving report.
Answer: C
QUESTION 242
Which of the following represents the LEAST appropriate use of the Internet by a
buying organization?
A. Publishing bid requests.
B. Providing copies of forms.
80
C. Providing objective ratings of suppliers.
D. Publishing the organization's purchasing policies.
Answer: C
QUESTION 243
Which of the following is MOST likely to be reduced by downsizing and rightsizing the
organization?
A. Promotions.
B. Salary increases.
C. Employee morale.
D. Career development opportunities.
Answer: C
QUESTION 244
Which of the following is a record of all the components of an item?
A. Return material authorization.
B. Bill of materials.
C. Purchase order.
D. Change order.
Answer: B
QUESTION 245
Which of the following should be the first step in hiring the right person for a
purchasing job?
A. Decision to recruit internally or externally.
B. Review of applicant qualifications.
C. Development of a job description.
D. Checking of applicant references.
81
Answer: C
QUESTION 246
Which of the following departments can BEST evaluate purchasing department
performance?
A. Quality assurance department.
B. Accounting department.
C. Legal department.
D. User department.
Answer: D
82
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