Can You Pass The Purchasing Test?
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Are you currently using POs and a centralized PO system?
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Yes
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No
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Not Sure
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About This Quiz
A quiz targeted to financial, accounting and purchasing management in the oil and gas industry to gauge their companies' position as it relates to best practices in smart purchasing.
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- 2.
Would you say there are good controls over your company's purchasing?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The given answer "Yes" suggests that the person believes there are good controls over their company's purchasing. This implies that the company has implemented effective measures and procedures to regulate and monitor the purchasing process, ensuring transparency, accountability, and minimizing the risk of fraud or unauthorized purchases. The person may have confidence in the company's purchasing department and their ability to adhere to established policies and guidelines.Rate this question:
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- 3.
Do you have confidence that your vendors are abiding by their contracts?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The given correct answer is "Yes". This suggests that the person has confidence that their vendors are abiding by their contracts. They believe that the vendors are fulfilling their obligations and meeting the terms and conditions stated in the contracts. This indicates a positive level of trust and assurance in the vendors' compliance with the agreed-upon agreements.Rate this question:
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- 4.
Are you conducting true vendor rationalization?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The given answer "Yes" suggests that the person conducting the vendor rationalization process is indeed conducting it in a true manner. This means that they are actively evaluating and streamlining their vendor relationships to optimize efficiency, reduce costs, and mitigate risks. They are likely assessing their current vendor portfolio, identifying redundancies, negotiating better terms, and consolidating vendors where possible. This approach can lead to improved vendor management, enhanced supplier relationships, and ultimately, better business outcomes.Rate this question:
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- 5.
Are you taking advantage of early payment discounts with your vendors?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The given answer suggests that the person is indeed taking advantage of early payment discounts with their vendors. This implies that they are making payments to their vendors before the due date in order to avail the discounts offered for early payments. This practice can help the person save money and improve their cash flow by reducing the amount they have to pay for goods or services.Rate this question:
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- 6.
Can you track detailed spending against AFEs on a well-by-well basis?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
Yes, you can track detailed spending against AFEs on a well-by-well basis. This implies that there is a system or process in place that allows for the monitoring and recording of expenses related to specific AFEs (Authorization for Expenditure) on a per-well basis. This could involve the use of financial software, project management tools, or other tracking mechanisms that enable the identification and allocation of costs to individual wells and their associated AFEs.Rate this question:
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- 7.
Are your drilling sites always getting the right parts they need at the right price?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The answer "Yes" suggests that the drilling sites are indeed always receiving the necessary parts they require at a reasonable price. This implies that the procurement process is efficient and effective, ensuring that the right parts are available when needed and at a cost that is deemed acceptable.Rate this question:
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- 8.
Are you completely compliant with the Section 404 of the Sarbanes-Oxley Act?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The given answer "Yes" suggests that the individual or organization is completely compliant with Section 404 of the Sarbanes-Oxley Act. This act requires companies to establish and maintain internal controls over financial reporting to ensure accuracy and reliability. By answering "Yes," it implies that the necessary measures have been implemented to meet the requirements of this section, demonstrating full compliance.Rate this question:
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- 9.
Do you currently have visibility to non-contract spend?
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Yes
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No
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Not Sure
Correct Answer
A. YesExplanation
The correct answer is "Yes" because it indicates that the person has visibility to non-contract spend. This means that they are able to see and track the expenses that are not covered by any contractual agreements. Having visibility to non-contract spend is important for financial management and budgeting purposes, as it allows the person to have a comprehensive view of all the expenses and make informed decisions based on that information.Rate this question:
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Quiz Review Timeline (Updated): Mar 19, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
Aug 26, 2009Quiz Created by
Adamcslick
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