BUAD 331 EXAM 2 EXAM SCRIPT 2026 FULL
QUESTIONS AND ACCURATE ANSWERS
GRADED A+
●● Which of the following is generally NOT true about supply
management and the bottom line (net profit to the firm)?
Purchased items account for a large percentage of the cost of goods sold.
Hence, a reduction in cost of purchased goods has a major impact on the
bottom line
A Euro increase in sales is equivalent to a Euro decrease in materials
cost in impacting the bottom line
Outsourcing can allow firms to focus on their core competencies,
possibly reducing waste, which then has the potential to improve the
bottom line
A dollar saved in materials cost is usually considered a dollar increase in
net income, which directly translates into bottom line savings
All of the above are true..
Answer: Euro increase in sales is equivalent to a Euro decrease in
materials cost in impacting the bottom line
●● How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
, C. By collaborating with other areas such as logistics on supplier
location decisions.
D. By increasing revenue through supplier innovation and new product
launch
E. All of the above (and MORE) are ways that purchasing can contribute
to organizational success..
Answer: All of the above (and MORE) are ways that purchasing can
contribute to organizational success
●● On Kraljic's matrix the quadrant of "bottleneck" is the most
challenging for purchasing managers to deal with? In fact it is
recommended that you think of ways to shift these items to other
quadrants of the matrix. What is one purchasing tactic that might allow
you to do that?
Reverse auction
Use P-cards and on-line catalogs
Set up a long term contract
Buying consortium, group together multiple buyers
Switch suppliers.
Answer: Buying consortium, group together multiple buyers
●● Both objective and subjective measures are used to measure the
performance of suppliers. Which of the following is NOT true regarding
objective and subjective measures?
Objective (Hard) Measures are quantitative
QUESTIONS AND ACCURATE ANSWERS
GRADED A+
●● Which of the following is generally NOT true about supply
management and the bottom line (net profit to the firm)?
Purchased items account for a large percentage of the cost of goods sold.
Hence, a reduction in cost of purchased goods has a major impact on the
bottom line
A Euro increase in sales is equivalent to a Euro decrease in materials
cost in impacting the bottom line
Outsourcing can allow firms to focus on their core competencies,
possibly reducing waste, which then has the potential to improve the
bottom line
A dollar saved in materials cost is usually considered a dollar increase in
net income, which directly translates into bottom line savings
All of the above are true..
Answer: Euro increase in sales is equivalent to a Euro decrease in
materials cost in impacting the bottom line
●● How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
, C. By collaborating with other areas such as logistics on supplier
location decisions.
D. By increasing revenue through supplier innovation and new product
launch
E. All of the above (and MORE) are ways that purchasing can contribute
to organizational success..
Answer: All of the above (and MORE) are ways that purchasing can
contribute to organizational success
●● On Kraljic's matrix the quadrant of "bottleneck" is the most
challenging for purchasing managers to deal with? In fact it is
recommended that you think of ways to shift these items to other
quadrants of the matrix. What is one purchasing tactic that might allow
you to do that?
Reverse auction
Use P-cards and on-line catalogs
Set up a long term contract
Buying consortium, group together multiple buyers
Switch suppliers.
Answer: Buying consortium, group together multiple buyers
●● Both objective and subjective measures are used to measure the
performance of suppliers. Which of the following is NOT true regarding
objective and subjective measures?
Objective (Hard) Measures are quantitative
