Fundamentals Of Business: Purchase Order Quiz

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| By Mgarg1982
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Mgarg1982
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  • 1/7 Questions

    How to find out, how many times a PO is changed after approved?

    • By Calling Buyer of the PO
    • By Calling Supplier on the PO
    • From PO Revision
    • From Item Revision
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About This Quiz

This quiz assesses knowledge on the fundamentals of business purchase orders, covering common errors, mandatory attributes, and approval hierarchies. It's designed to enhance understanding of procurement processes and improve management skills in purchasing.

Fundamentals Of Business: Purchase Order Quiz - Quiz

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  • 2. 

    What type of error you get while Purchase order form?

    • You are not setup as employee

    • You not setup as Buyer

    • Your are using someone else login

    • Please select a correct organization

    Correct Answer
    A. You not setup as Buyer
    Explanation
    As per seeded functionality you must be a buyer to enter a PO.

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  • 3. 

    In relation to the purchasing function, the term quality refers to:

    • Highest price

    • Popularity of the menu item

    • Greatest value

    • Suitability for the intended use

    Correct Answer
    A. Suitability for the intended use
    Explanation
    In the context of the purchasing function, the term "quality" refers to the suitability of a product or service for its intended use. This means that the purchased item should meet the specific requirements and needs of the organization or individual who will be using it. It is important to consider factors such as reliability, durability, performance, and functionality when determining the quality of a product. The focus is on ensuring that the purchased item will effectively serve its purpose and meet the desired outcomes.

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  • 4. 

    In Most of the cases, You can not change the ................after standard PO is approved?

    • Item Quantity

    • Supplier

    • Item Price

    • Supplier Site

    Correct Answer
    A. Supplier
    Explanation
    In most cases, you cannot change the supplier after a standard PO is approved. Once the purchase order is finalized and approved, it is typically binding and cannot be altered without going through a formal process. Changing the supplier would require canceling the existing PO and creating a new one with the new supplier, which can be time-consuming and may involve additional costs. Therefore, it is essential to carefully select the supplier before approving the standard PO to avoid any complications or disruptions in the procurement process.

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  • 5. 

    Name Approval Hierarchies in core Purchasing?

    • Position Hierarchy, Job Hierarchy

    • Position Hierarchy and Employee Supervisor Hierarchy

    • Job Hierarchyand Finance Hierarchy

    • Employee Supervisor Hierarchy and Job Hierarchy

    Correct Answer
    A. Position Hierarchy and Employee Supervisor Hierarchy
    Explanation
    The correct answer is Position Hierarchy and Employee Supervisor Hierarchy. In core Purchasing, the name approval hierarchies are determined based on the positions within the organization and the hierarchy of employee supervisors. This means that the approval of names for purchasing activities is determined by the positions held by individuals and their relationship with their supervisors. The position hierarchy defines the authority and responsibility of each position, while the employee supervisor hierarchy determines the reporting structure within the organization. Both hierarchies play a crucial role in determining the approval process for name requests in core Purchasing.

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  • 6. 

    Which of following is not mandatory in order to raise the PO?

    • Set as a buyer, Suppliers, Supplier sites

    • Currency, items, document types.

    • Approved Supplier list, Sourcing Rules

    • None of Above

    Correct Answer
    A. Approved Supplier list, Sourcing Rules
    Explanation
    The correct answer is "Approved Supplier list, Sourcing Rules." These two elements, the Approved Supplier list and Sourcing Rules, are not mandatory in order to raise the PO. While having an Approved Supplier list and Sourcing Rules can provide additional guidance and control in the procurement process, they are not essential requirements for raising a purchase order. The other options listed, such as Set as a buyer, Suppliers, Supplier sites, Currency, items, and document types, are all necessary components for raising a purchase order.

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  • 7. 

    Which of following is attributes are mandatory to enter a item on Purchase Order?

    • Default Buyer

    • Use approved Supplier list

    • Purchased and Purchasable

    • List Price and Price Tolerance

    Correct Answer
    A. Purchased and Purchasable
    Explanation
    The attributes "Purchased and Purchasable" are mandatory to enter an item on a Purchase Order. This means that the item must be marked as both "purchased" and "purchasable" in order to be included in a purchase order. The other options, such as "Default Buyer," "Use approved Supplier list," and "List Price and Price Tolerance," may be important factors in the purchasing process, but they are not specifically required attributes for entering an item on a Purchase Order.

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Quiz Review Timeline (Updated): Mar 22, 2023 +

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  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 28, 2014
    Quiz Created by
    Mgarg1982
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