Chapter 05

A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what?

Bid

Which one of the following is NOT a reason for buying or outsourcing?

Due to a lack (i.e., shortage) of procurement personnel

All of the following are reasons for Making an item in your own company operations, EXCEPT for which one?

Due to insufficient capacity in your company operations

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tenders.

False

The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks.

False

The fastest or most immediate way that a purchasing person can directly impact the profit of their company is to:

Obtain a price reduction on the items they are buying

Which of the following is an internal document that defines the need to purchase goods and/or services? This document does not constitute a contractual relationship with any external party.

Purchase Requisition

The purchasing tool described as "A standard business process whose purpose is to collect written information about the capabilities of various suppliers", is known as?

Request for Information

Outsourcing allows the company that is outsourcing a product, to concentrate on core capabilities and reduce staffing levels.

True

The purchasing function is one of the most value-enhancing functions in any organization, however, it is still necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks.

True