When you choose any run-of-the-mill supplier just because their offers are reasonable, you increase the probability of running into issues in the future. It can be related to product quality, supply limits, stock availability, risk or cybersecurity threats, overcharging, fraud, or other severe crises that will affect your business.
We cannot judge a supplier solely based on their demos, proposals, and bids. Only when you look past it will you be able to determine the lacking areas, associated risks, and supply capacity. It takes months to pull together a vendor selection process. Canceling the contract and moving to a different vendor can temporarily halt your business activities and double up the documentation.
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1.
electronic funds transfer for small, occasional purchases from suppliers.
EDI for all small, occasional purchases from suppliers.
a nonvoucher system.
a disbursement voucher system.
2.
product quality
product price
vendor corporate structure
vendor delivery dependability
3.
Several invoices may be included on one voucher, reducing the number of checks.
It is a less expensive and easier system to administer than other systems.
The time of voucher approval and payment can be kept separate.
Disbursement vouchers may be pre-numbered and tracked through the system.
4.
just-in-time production.
safety stock.
optimal inventory quantity.
economic order quantity.
5.
price of the items
counted and inspected by
quantity of the items
purchase order number
6.
blanket purchase order
purchase order
evaluated receipt settlement
voucher
7.
sales force automation.
optical character recognition.
electronic data interchange.
vendor-managed inventory.
8.
Disbursement vouchers facilitate separating the time of invoice approval from the time of invoice payment.
There are no disadvantages to using disbursement vouchers.
Disbursement vouchers reduce the number of checks written.
Disbursement vouchers can be prenumbered which simplifies the tracking of all payables.
9.
requiring all suppliers to use EDI to expedite the receiving department function
requiring all suppliers to include RFID tags on their items
requiring all suppliers to have the carrier verify quantities and item numbers before shipment
requiring all delivery trucks to have satellite data terminals to expedite the receiving department function
10.
general ledger and reporting system.
revenue cycle.
production cycle.
expenditure cycle.
11.
cycle
nonvoucher
evaluated receipt settlement
voucher
12.
eliminating the need for vendor invoices.
eliminating the need for receiving reports.
eliminating the need to prepare and mail checks.
eliminating the need for purchase orders.
13.
inventory master file.
purchase requisition transaction file.
inventory transaction file.
purchase requisition master file.
14.
minimizing item cost.
high stockout costs.
receiving goods or services just prior to the time they are needed.
maintaining inventory levels so that production can continue even if inventory use is greater than expected.
15.
Just-in-time inventory
Economic order quantity
Materials requirements planning
Evaluated receipt settlement
16.
goods that fail inspection for quality
All of the above are possible scenarios.
quantity different from that ordered
damage to the goods
17.
a just-in-time inventory system.
a nonvoucher system.
an evaluated receipt settlement system.
a voucher system.
18.
determine the optimal reorder point
reduce required inventory levels by scheduling production rather than estimating needs
determine the optimal order size
minimize or entirely eliminate carrying and stockout costs
19.
reducing inventory carrying costs
production scheduling
reducing the opportunity for inventory theft
requires more analysis than EOQ
21.
the controller
the receiving clerk
the vendor
the purchasing department manager
22.
Inventory Control
Marketing
None of the above
Production
23.
cash disbursement
ordering
receiving
shipping
24.
a credit manager.
the treasurer.
an accounts payable clerk.
a cashier.
25.
reorder point
economic order quantity
company inventory policies
stockout point
26.
frequent deliveries of large quantities to be held at the work centers.
less frequent deliveries of large quantities of goods to central receiving.
infrequent bulk deliveries of items directly to work centers.
frequent deliveries of smaller quantities of items to the work centers.
27.
ordering costs.
stockout costs.
the reorder point.
carrying costs.
28.
customer demand
optimal demand
supplier demand
forecast demand
29.
controller
cashier
accounts payable department
treasurer
30.
Only JIT reduces costs and improves efficiency.
MRP schedules production to meet estimated sales needs; JIT schedules production to meet customer demands.
JIT is more effectively used with products that have predictable patterns of demand.
MRP is especially useful for products such as fashion apparel.
31.
an EDI auction.
a trading exchange.
a supplier consortium.
a reverse auction.
32.
The system creates a purchase order.
The inventory master file is accessed to find the preferred supplier(s).
The department that created the purchase request may buy the requested item(s).
The accounts payable department approves the purchase request, creating a purchase order.
33.
All of the above are correct.
the general ledger accounts to be debited.
a list of outstanding invoices.
the net payment amount after deducting applicable discounts and allowances.
34.
when demand for inventory is very unpredictable
when a product has a short life cycle
MRP is always a preferred method over JIT.
when demand for inventory is fairly predictable
35.
Credit limits can be set for procurement cards, but not corporate credit cards.
Procurement cards can only be used with approved vendors, but credit cards can be used anywhere.
Credit cards can be used to make purchases without an explicit sign off by supervisors, but procurement cards require a sign off.
Procurement card invoices are sent separately for each card, whereas corporate credit cards are consolidated into a single invoice.
36.
inventory, vendors, and open purchase orders
vendors and accounts payable
inventory, vendors, and accounts payable
open purchase orders and accounts payable
37.
product price
vendor delivery dependability
product quality
All would be equally important.
38.
purchasing department; controller
purchasing department; treasurer
accounts payable department; controller
accounts payable department; treasurer
39.
receiving report
debit memo
purchase order
blanket purchase order
40.
purchase order
purchase requisition
voucher
blanket purchase order
41.
is able to compute exactly the cost of purchasing by taking into account all costs associated with inventory carrying.
requires vendors to deliver inventory to the production site exactly when needed and in the correct quantities.
reduces the uncertainty about when materials are needed, thereby reducing the need to carry large levels of inventory.
None of the above is correct.
42.
toys associated with new movie releases.
alarm clocks.
motor oil.
toothpaste.
43.
a purchase order, vendor invoice, and receiving report.
a bill of lading and vendor invoice.
a purchase requisition, purchase order, and receiving report.
a purchase requisition, vendor invoice, and receiving report.
44.
sales force automation.
optical character recognition.
electronic data interchange.
vendor-managed inventory.
45.
credit rating of the vendor
prices of goods
ability to deliver on time
quality of goods
46.
eliminating the need to prepare and mail checks.
eliminating the need for purchase orders.
eliminating the need for vendor invoices.
eliminating the need for receiving reports.
47.
blanket purchase order.
fixed purchase order.
standard purchase order.
set purchase order.
48.
implementing a JIT inventory system.
requiring employees to personally purchase items then reimbursing employees at the end of each month.
using procurement cards.
paying amounts out of petty cash.
49.
cash payments activity
cash collection activity
sales order entry process
shipping function
50.
shipping goods to customers.
receiving goods from vendors.
ordering inventory, supplies, or services.
a customer sale.