L4M5

When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?A . Market consult stageB . Post-contract stageC . Specification stageD . Post-tender stageView AnswerAnswer: C Explanation: The earlier procurement get involved in the procurement processes, the better. If...

Ma Bell was the sole provider of landline telephone service to most of the US in 1980s. This is an example of...?A . MonopsonyB . MonopolyC . Monopolistic competitionD . Perfect competitionView AnswerAnswer: B Explanation: A monopoly exists when only one company can supply an essential product or service in...

Which of the following is the process enabling the buyer to share with the supplier their purposes and needs to focus on some specific areas such as quality, cost, social and environmental standards, etc in the supplier's bids?A . Supplier selectionB . Supply positioningC . Supplier appraisalD . Supplier conditioningView...

How contribution is calculated in break-even analysis?A . Fixed costs divided by variable costsB . Variable costs subtracted from priceC . Price minus fixed costsD . Variable costs subtracted from fixed costsView AnswerAnswer: B Explanation: Contribution = Price - Variable cost Break-evenpoint (volume) = Fixed cost/Contribution

To buying organisation, savings can be achieved from different saving levers or tactics . Which of the following are means that deliver savings through optimising specifications?A . Value engineeringB . Part substitutionC . BudgetlinkagesD . Compare total cost of ownershipE . Volume poolingView AnswerAnswer: A,B Explanation: If driving greater value...

Which of the following is the internal factor that is taken intoprice of a product?A . Risk managementB . Customer tastesC . ElasticityD . Exchange rateView AnswerAnswer: A Explanation: In order to answer this question, you should better consider each option: 'Exchange rate' is the value of one nation's currency...

To buying organisation, savings can be achieved from different saving levers or tactics . Which of the following are means that deliver savings through optimising specifications?A . Value engineeringB . Part substitutionC . BudgetlinkagesD . Compare total cost of ownershipE . Volume poolingView AnswerAnswer: A,B Explanation: If driving greater value...

Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.A . Cleaning servicesB . CoalC . Seniormanagement salaryD . Insurance for production linesE . Scrap metalF . Hourly production wagesView AnswerAnswer: B,E,F Explanation: Direct costs are those costs of a product/service...

A procurement professional is sourcing low value items. He conducts market analysis and realise that these items can be provided by many suppliers and switching cost between suppliersis relatively low. He also assume that the relationship between buyer and supplier will be transactional rather than long-term. According to Thomas-Kilmann conflict...

Which of the following best describes Leverage quadrant in Kraljicmatrix?A . Low risk, high importanceB . High value, high complexC . Low risk, low importanceD . High complex, low importanceView AnswerAnswer: A Explanation: In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR....