APP Purchasing Principles 2

Question 1

Which purchasing strategy involves maintaining multiple approved suppliers for a single commodity to reduce supply risk?

Accepted Answer

Dual or multiple sourcing

Answer

Multiple sourcing spreads risk across several suppliers, ensuring continuity if one supplier fails.

Question 2

What is the primary purpose of a Request for Quotation (RFQ)?

Accepted Answer

To obtain competitive pricing for well-defined goods or services

Answer

An RFQ is used when specifications are clearly defined and the buyer wants competitive price bids.

Question 3

Under the Uniform Commercial Code (UCC), what is the statute of limitations for breach of contract for the sale of goods?

Accepted Answer

4 years

Answer

The UCC sets a 4-year statute of limitations for breach of contract claims involving the sale of goods.

Question 4

Which cost analysis technique separates a supplier's price into its component parts (labor, material, overhead, profit)?

Accepted Answer

Should-cost analysis

Answer

Should-cost analysis breaks down what a product or service ought to cost based on its constituent elements.

Question 5

A buyer receives goods that appear damaged upon delivery. What should the buyer do FIRST?

Accepted Answer

Note the exception on the delivery receipt before signing

Answer

Noting exceptions on the delivery receipt preserves the buyer's rights and documents the damage at point of receipt.

(APP) Accredited Purchasing Practitioner Certification Practice Test