Procurement Final Exam questions with answers

Procurement Final Exam questions with |\ |\ |\ |\ |\




answers

01. The increase in profit obtained by a decrease in
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purchasing spend is called: |\ |\ |\




A) Return on assets effect.
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B) Compound profitability effect.
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C) Profit leverage effect.
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D) Incremental income effect. - CORRECT ANSWERS ✔✔C)
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Profit leverage effect.
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01. An unauthorized purchase made by an internal client
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in violation of a company's established procurement
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procedure is called a: |\ |\ |\




A) Maverick Purchase.
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B) Flagged Purchase.
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,C) Rogue Purchase.
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D) Sideline Purchase. - CORRECT ANSWERS ✔✔A)
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Maverick Purchase. |\




01. All of the following are core operational procurement
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objectives except: |\




A) Managing Supply Chain Risks.
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B) Achieving purchase cost reductions.
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C) Ensuring material availability and timely delivery.
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D) Pursuing supplier base rationalization. - CORRECT
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ANSWERS ✔✔D) Pursuing supplier base rationalization.
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01. Strategic supply management typically provides
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significant enterprise value in all of the following areas
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except:


A) Cost Management.
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, B) Revenue Growth.
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C) Customer Retention.
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D) Asset Management. - CORRECT ANSWERS ✔✔C)
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Customer Retention. |\




01. Recent trends for the CPO position include all of the
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following except: |\




A) Greater visibility at executive leadership levels in
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companies.


B) Increased reliance on promotion from within the
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organization.


C) Expanded levels of formal education, at least to the
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MBA level. |\




D) More frequent hiring from non-supply functional areas.
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- CORRECT ANSWERS ✔✔B) Increased reliance on
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promotion from within the organization. |\ |\ |\ |\