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NO.1 Which of the following statements are TRUE? (Choose all that apply.)

A. The prices of products produced by suppliers that produce single products tend to be lower.

B. The quality of a product that is produced by suppliers that produce single products tends to be higher.

C. Suppliers that produce single products tend to be more stable financially.

D. The delivery suppliers that produce single products tends to be faster.

Answer: A, B, D

NO.2 Which of the following support(s) the utilization of a supplier quality rating system? (Choose all that

apply.)

A. The identification of quality as an important measure of supplier performance.

B. The availability of comparisons between suppliers of similar commodities.

C. The provision of a ready reference for future procurement.

D. None of the above.

Answer: A, B, C

NO.3 Which of the following would be liable for any shipping damages if a product is shipped "F.O.B.

Destination, Freight Paid by Buyer"?

A. The seller.

B. The buyer.

C. The carrier.

D. Cannot be determined from above information.

Answer: A

NO.4 On which of the following is the following statement based?

A "material breach" on the part of the federal government does not preclude the contractor from

continuing its work on behalf of the government, pending resolution of any request for relief, claim, appeal,

or action arising under the contract.

A. Termination clause.

B. Davis-Bacon Act.

C. Disputes clause.

D. Clayton Act.

Answer: C

NO.5 Which of the following statements is MOST accurate?

A. Only systems contracts require specific approval on every order.

B. Only procurement cards require specific approval on every order.

C. Both systems contracts and procurement cards requires specific approval on every order.

D. Neither systems contracts nor procurement cards requires specific approval on every order.

Answer: D

NO.6 In which of the following is an integrated information system is generally classified?

A. Direct.

B. Standard.

C. Overhead.

D. Semi-variable.

Answer: C

NO.7 XXXX.com has annual revenues of $1.5 billion. Its profit is estimated to be $180 million in earnings

before interest and tax. What should XXXX.com do to achieve an increase in profitability of $60 million?

A. Increase its sales by $250 million.

B. Increase its sales by $500 million.

C. Reduce the cost of goods by $60 million.

D. Increase the cost of goods by $60 million.

E. Reduce the cost of goods by $120 million.

Answer: B

NO.8 XXXX.com has a 10% profit margin before taxes and spends 50% of its sales dollar on materials. What

percentage reduction in material costs for XXXX.com to achieve an increase of 5% in sales?

A. 1%

B. 2.5%

C. 5%

D. 7.5%

E. 10%

Answer: A