Tag: definition and functions of purchasing and storage department

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Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

Purchase Manager considers ______ factors also about suppliers before purchasing specific items for the production.

  1. time of delivery

  2. trade discount

  3. terms of payment

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A purchase manager must evaluate multiple factors including delivery time, costs (discounts), and payment terms to ensure optimal procurement.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

The first activity of Purchasing cycle is _______.

  1. communicating requirement to the purchase

  2. source Selection and development

  3. recognizing the need for procurement

  4. inspection of goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The purchasing cycle begins when a need for a product or service is identified and formally recognized.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

______ is the process of recording details of stock movements and balances in terms of financial value.

  1. Book-keeping

  2. Financial accounting

  3. Stores accounting

  4. Management accounting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Stores accounting specifically deals with recording the financial value of stock movements and current inventory balances.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

Issue and Dispatch is the process of _____.

  1. receiving demands

  2. selecting the items required

  3. dispatching the products to customers

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Issue and dispatch involves the entire process of handling demands, selecting the items from stock, and shipping them to the end user or customer.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

The purchase order form is designed by _______.

  1. Materials Manager

  2. Purchase Manager

  3. Marketing Manager

  4. None of them
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Purchase Manager is responsible for the procurement process, including designing and authorizing the purchase order form. Other roles like Materials or Marketing Managers may use the form, but they do not typically design it.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

_________ is the operation of continuously arranging receipts and issues in such a way so as to ensure that stock balances in quantity and/or value.

  1. Inventory control

  2. Production control

  3. Demand forecast

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Inventory control is the systematic process of managing stock levels, receipts, and issues to ensure accurate quantity and value balances. It is essential for maintaining operational efficiency and financial accuracy.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

The terms purchasing and procurement should not be seen as synonymous. As such, which of the following statements do you think has greatest validity?

  1. Procurement is broadly equivalent to purchasing

  2. Purchasing has a broader meaning than procurement

  3. Procurement has a broader meaning than purchasing

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Procurement is a broader strategic function that includes purchasing, but also encompasses sourcing, supplier relationship management, and logistics. Purchasing is generally limited to the transactional act of buying goods or services.