MSU SCM 371 QUIZZES QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
Which category is low-importance, but high market complexity?
a.) Critical
b.) Exploitable
c.) Routine
d.) Bottleneck
e.) Leverage - Answers - d.) Bottleneck
Which of the following is an indirect material buy?
a.) Plastic for a water bottle factory
b.) Rubber for the sneaker factory
c.) Safety goggles for the car factory
d.) Whole grains for the cereal factory
e.) Lumber for framing a house - Answers - c.) Safety goggles for the car factory
Spreading fixed costs out over a larger number of products, reducing the cost per unit is
called?
a.) Performance measurement
b.) Program management
c.) Scale economies or economies of scale
d.) Order management - Answers - c.) Scale economies or economies of scale
Which of the following best describes the "Strategic Sourcing Matrix"?
a.) A matrix to categorize supplier relationships
b.) A tool to analyze the purchasing process
c.) A matrix used to evaluate the complexity of a market and the importance of a
category
d.) A method for negotiating with suppliers - Answers - c.) A matrix used to evaluate the
complexity of a market and the importance of a category
Which of the following is NOT a factor in defining the complexity of a supply market?
a.) Sales growth of the supplier
b.) Customer satisfaction
c.) Technological uniqueness
d.) Number of suppliers - Answers - b.) Customer satisfaction
Which category in the Strategic Sourcing Matrix involves buying large volumes from
competitive low-risk supplier markets?
a.) Bottleneck
b.) Leverage
c.) Routine
,d.) Critical/Strategic - Answers - b.) Leverage
What is the main focus when managing Routine/Non-Critical products?
a.) Cost Management
b.) Strategic Partnership
c.) Price Efficiency
d.) Innovation - Answers - c.) Price Efficiency
Which of the following is typically associated with Direct Materials?
a.) Inputs to your firm's final product
b.) Maintenance, Repair, and Operations
c.) Services that support business operations
d.) Machinery and equipment - Answers - a.) Inputs to your firm's final product
What is a key characteristic of Capital Goods in the context of purchasing?
a.) Low-dollar purchases
b.) Recurring purchases
c.) Generally high-dollar purchases and very low volume purchases
d.) Intangible products - Answers - c.) Generally high-dollar purchases and very low
volume purchases
Which of the following is a focus when dealing with Bottleneck products?
a.) Leveraging spend power
b.) Reducing the number of suppliers
c.) Ensuring steady supply with minimal disruptions
d.) Focusing on efficiency - Answers - c.) Ensuring steady supply with minimal
disruptions
What should be prioritized during the Supplier Selection Process?
a.) Supplier size
b.) Quick decision-making
c.) Cross-functional team alignment & approval
d.) Cost alone - Answers - c.) Cross-functional team alignment & approval
Which of the following are key activities in the pre-RFQ stage of the Supplier Selection
Process? (Select all that apply)
a.) Performance monitoring after awarding the contract
b.) Identification of potential suppliers
c.) Ignoring supplier past performance
d.) Financial evaluation of suppliers - Answers - a.) Performance monitoring after
awarding the contract
b.) Identification of potential suppliers
d.) Financial evaluation of suppliers
Which of the following are types of spend categories in purchasing? (Select all that
apply)
, a.) Indirect Materials
b.) Services
c.) Personal Expenses
d.) Direct Materials - Answers - a.) Indirect Materials
b.) Services
d.) Direct Materials
Quiz 3 - Answers - Quiz 3
Quiz 4 - Answers - Quiz 4
When a contract is cancelled because the supplier violated contract terms, the buyer
may cancel the contract. What is this type of cancellation called?
a.) Cancellation for mutual consent
b.) Cancellation for inconvenience
c.) Cancellation for convenience
d.) Cancellation by default
e.) Cancellation for nonpayment - Answers - d.) Cancellation by default
When solving disputes in buyer-supplier relationships, which action should be used as a
last resort?
Question 2 options:
a.) Mediation
b.) Putting yourself in the shoes of the supplier
c.) Open communication
d.) Going to court
e.) Arbitration - Answers - d.) Going to court
Which legislation was developed in 2002 in response to several corporate scandals,
including Enron and Worldcom?
Question 3 options:
a.) The Dodd-Frank Act
b.) The Uniform Commercial Code
c.) The Sarbanes-Oxley Act
d.) Foreign Corrupt Practices Act
e.) Customs-Trade Partnership Against Terrorism - Answers - c.) The Sarbanes-Oxley
Act
As a buying agent, whose best interest should you have in mind?
Question 4 options:
a.) Your own best interest
b.) Society's best interest
c.) The supplier's best interest
d.) The sales representative's best interest
e.) Your employer's best interest - Answers - e.) Your employer's best interest
ACCURATE ANSWERS
Which category is low-importance, but high market complexity?
a.) Critical
b.) Exploitable
c.) Routine
d.) Bottleneck
e.) Leverage - Answers - d.) Bottleneck
Which of the following is an indirect material buy?
a.) Plastic for a water bottle factory
b.) Rubber for the sneaker factory
c.) Safety goggles for the car factory
d.) Whole grains for the cereal factory
e.) Lumber for framing a house - Answers - c.) Safety goggles for the car factory
Spreading fixed costs out over a larger number of products, reducing the cost per unit is
called?
a.) Performance measurement
b.) Program management
c.) Scale economies or economies of scale
d.) Order management - Answers - c.) Scale economies or economies of scale
Which of the following best describes the "Strategic Sourcing Matrix"?
a.) A matrix to categorize supplier relationships
b.) A tool to analyze the purchasing process
c.) A matrix used to evaluate the complexity of a market and the importance of a
category
d.) A method for negotiating with suppliers - Answers - c.) A matrix used to evaluate the
complexity of a market and the importance of a category
Which of the following is NOT a factor in defining the complexity of a supply market?
a.) Sales growth of the supplier
b.) Customer satisfaction
c.) Technological uniqueness
d.) Number of suppliers - Answers - b.) Customer satisfaction
Which category in the Strategic Sourcing Matrix involves buying large volumes from
competitive low-risk supplier markets?
a.) Bottleneck
b.) Leverage
c.) Routine
,d.) Critical/Strategic - Answers - b.) Leverage
What is the main focus when managing Routine/Non-Critical products?
a.) Cost Management
b.) Strategic Partnership
c.) Price Efficiency
d.) Innovation - Answers - c.) Price Efficiency
Which of the following is typically associated with Direct Materials?
a.) Inputs to your firm's final product
b.) Maintenance, Repair, and Operations
c.) Services that support business operations
d.) Machinery and equipment - Answers - a.) Inputs to your firm's final product
What is a key characteristic of Capital Goods in the context of purchasing?
a.) Low-dollar purchases
b.) Recurring purchases
c.) Generally high-dollar purchases and very low volume purchases
d.) Intangible products - Answers - c.) Generally high-dollar purchases and very low
volume purchases
Which of the following is a focus when dealing with Bottleneck products?
a.) Leveraging spend power
b.) Reducing the number of suppliers
c.) Ensuring steady supply with minimal disruptions
d.) Focusing on efficiency - Answers - c.) Ensuring steady supply with minimal
disruptions
What should be prioritized during the Supplier Selection Process?
a.) Supplier size
b.) Quick decision-making
c.) Cross-functional team alignment & approval
d.) Cost alone - Answers - c.) Cross-functional team alignment & approval
Which of the following are key activities in the pre-RFQ stage of the Supplier Selection
Process? (Select all that apply)
a.) Performance monitoring after awarding the contract
b.) Identification of potential suppliers
c.) Ignoring supplier past performance
d.) Financial evaluation of suppliers - Answers - a.) Performance monitoring after
awarding the contract
b.) Identification of potential suppliers
d.) Financial evaluation of suppliers
Which of the following are types of spend categories in purchasing? (Select all that
apply)
, a.) Indirect Materials
b.) Services
c.) Personal Expenses
d.) Direct Materials - Answers - a.) Indirect Materials
b.) Services
d.) Direct Materials
Quiz 3 - Answers - Quiz 3
Quiz 4 - Answers - Quiz 4
When a contract is cancelled because the supplier violated contract terms, the buyer
may cancel the contract. What is this type of cancellation called?
a.) Cancellation for mutual consent
b.) Cancellation for inconvenience
c.) Cancellation for convenience
d.) Cancellation by default
e.) Cancellation for nonpayment - Answers - d.) Cancellation by default
When solving disputes in buyer-supplier relationships, which action should be used as a
last resort?
Question 2 options:
a.) Mediation
b.) Putting yourself in the shoes of the supplier
c.) Open communication
d.) Going to court
e.) Arbitration - Answers - d.) Going to court
Which legislation was developed in 2002 in response to several corporate scandals,
including Enron and Worldcom?
Question 3 options:
a.) The Dodd-Frank Act
b.) The Uniform Commercial Code
c.) The Sarbanes-Oxley Act
d.) Foreign Corrupt Practices Act
e.) Customs-Trade Partnership Against Terrorism - Answers - c.) The Sarbanes-Oxley
Act
As a buying agent, whose best interest should you have in mind?
Question 4 options:
a.) Your own best interest
b.) Society's best interest
c.) The supplier's best interest
d.) The sales representative's best interest
e.) Your employer's best interest - Answers - e.) Your employer's best interest
