Practice Test Geeks(APP) Accredited Purchasing Practitioner Certification Practice Test
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Purchasing Principles Flashcards

7 cards from real APP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Purchasing Principles flashcards as text

  1. Which concept describes the practice of reducing the total number of suppliers to improve relationships and leverage?

    Answer: Supply base rationalization

    Supply base rationalization (or supplier consolidation) reduces the number of suppliers to focus on fewer, higher-value relationships.

  2. What is 'reverse auction' in procurement?

    Answer: Suppliers competitively bid prices downward in real time to win a buyer's business

    In a reverse auction, multiple suppliers compete by submitting progressively lower bids, with the lowest price typically winning the contract.

  3. What does 'incoterms' govern in international purchasing?

    Answer: Transfer of risk and responsibility for goods between buyer and seller

    Incoterms (International Commercial Terms) define when risk and cost responsibility transfer from seller to buyer during international shipment.

  4. Which of the following BEST describes 'category management' in procurement?

    Answer: Grouping related spend areas and applying a strategic sourcing approach to each group

    Category management organizes procurement spend into logical groups and applies tailored strategies to maximize value in each category.

  5. A buyer discovers that a supplier is using a sub-tier supplier that violates environmental regulations. What is the buyer's PRIMARY concern?

    Answer: Reputational, legal, and supply chain risk to the buying organization

    Sub-tier supplier violations can expose the buying organization to reputational damage, regulatory liability, and supply disruption.

  6. What is the 'Kraljic Matrix' used for in purchasing?

    Answer: Segmenting purchased items by supply risk and profit impact to guide sourcing strategy

    The Kraljic Matrix categorizes purchases into four quadrants (leverage, strategic, bottleneck, non-critical) to prioritize procurement strategies.

  7. Which of the following is a characteristic of a 'strategic partnership' with a supplier?

    Answer: Mutual investment, shared risk, and long-term commitment to joint goals

    Strategic partnerships involve deep collaboration, shared objectives, and mutual commitment that go far beyond typical buyer-supplier transactions.