Question 1 (1 point)
A company has the following financial information (in millions of $):
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Sales |
$ |
277 |
Cost of goods sold |
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Direct labor |
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21 |
Materials |
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133 |
Overhead |
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17 |
All other costs |
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71 |
Pretax earnings |
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35 |
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What is the percentage increase in earnings from a 5% savings in materials purchasing?
Question 1 options:
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4)
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19.0%
Question 5 (1 point)
Which of the following is a sourcing strategic decision?
Question 5 options:
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1)
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Which products or services should be supplied from offshore? |
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2)
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How should suppliers be managed on an ongoing basis? |
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3)
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Which suppliers should be selected to provide the desired products or services? |
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4)
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All of these choices.
Question 7 (1 point)
When the majority of the company’s business is given to one supplier and other suppliers are treated as backup suppliers, this is called
Question 7 options:
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1)
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a preferred supplier strategy. |
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2)
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a dual sourcing strategy. |
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3)
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a cross-sourcing strategy. |
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4)
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a spend consolidation strategy.
Question 9 (1 point)
When purchasing finds savings in the cost of goods sold,
Question 9 options:
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1)
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this is called the purchasing effect. |
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2)
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such savings fall directly to the bottom line. |
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3)
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both of the above are true. |
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4)
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neither of the above is true. |
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Question 10 (1 point)
Transaction costs tend to be higher for commodities, especially when multiple suppliers are in competition with each other.
Question 10 options:
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