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1.
Which of the following conditions enhance the buyer's negotiating power?
- Buyers display price sensitivity.
- High upfront costs deter new market entrants.
- The possibility of suppliers integrating forward into the market.
- Buyers threatening to integrate backward into production.
2.
When a buyer lacks technical expertise to design a complex specification, which sources can be consulted to create one? Select TWO.
3.
A company heavily invests in fixed assets, with most working capital tied up in raw materials, goods in progress, and inventory. Rivals adopt robotics and automation to boost efficiency. What industry does this company belong to?
4.
Which technological innovation is considered a disruptor to traditional retail business models?
5.
A petrochemical firm is digitizing its operations. The procurement manager drafts a comprehensive specification but uses "good quality" as the quality standard. Is this approach valid?
6.
Which of these best describes target costing?
7.
What risks does a buyer face when adopting conformance specifications?
8.
During the procurement of IT equipment, at which phase are buyer expectations converted into technical requirements?
9.
An Indian bathroom furniture company plans to launch Bluetooth-enabled fittings with thermostat displays. A cross-functional team meets to decide on features customers will value while keeping costs low. What process is this?
10.
After a project closes, the procurement team discovers they spent $5,000 less than the allocated budget. What is this analysis called?
11.
Identify TWO examples of direct expenses in a construction company.
12.
What are potential outcomes of insufficient specification detail? Select TWO.
13.
A motive company segments its supply market to procure components for electric vehicles. Which segmentation variable is used?
14.
Based on the following data, calculate the organization's closing bank balance: Sales: $450,000, 75% on credit.Indirect costs: $1,500,000. $1,000,000 asset sale funded via bank loan. Dividend: $175,000. Determine the organization's closing bank balance for the year.
15.
Which organization establishes U.S. standards for products and services?
16.
A procurement manager seeks cost breakdowns (direct, indirect, fixed, and variable) for industry analysis. Which technique is appropriate?
17.
A company consolidates office supply spending into broader categories. Senior managers fear increased costs. Are these concerns valid?
18.
Which type of specification requires the least development time?
19.
A charity operating in flood zones spends less than its budgeted amount. What is this surplus known as?
20.
A construction procurement manager evaluates risks in a complex project and advises mitigation strategies. Is this approach justified?
21.
The semiconductor industry faces barriers to entry due to controlled environments and high costs. What are the primary obstacles?
1. Limited industry growth
2.Significant upfront investments
3. Established economies of scale
4.Low switching costs
22.
The ISO/IEC 27000 series primarily addresses which domain?
23.
Which document includes functional and non-functional requirements, constraints, metrics, and product reliability details?
24.
Which TWO factors directly affect labor variance?
