CCA CCA Procurement & Purchasing 2 — Questions and Answers
Question 1: Which of the following best describes 'group purchasing' (GPO) in foodservice?
- Buying food items in groups by category
- Joining a collective to leverage combined buying power for better pricing (Correct answer)
- Purchasing all items from a single distributor
- Grouping menu items by cost for bulk discounts
Correct answer: Joining a collective to leverage combined buying power for better pricing
A Group Purchasing Organization (GPO) pools the buying power of multiple operations to negotiate lower prices from vendors.
Question 2: A CCA receives an invoice that doesn't match the purchase order. The correct action is to:
- Pay the invoice and adjust the budget
- Issue a credit memo and contact the vendor to resolve the discrepancy (Correct answer)
- Discard both documents and reorder
- Process payment after the next delivery
Correct answer: Issue a credit memo and contact the vendor to resolve the discrepancy
When an invoice doesn't match the purchase order, a credit memo is issued and the vendor is contacted to correct the discrepancy before payment.
Question 3: Yield percentage is important in purchasing because it helps calculate:
- Employee productivity rates
- The actual usable amount of a product after trimming and preparation (Correct answer)
- Menu popularity indexes
- Vendor delivery frequency
Correct answer: The actual usable amount of a product after trimming and preparation
Yield percentage indicates the usable portion of a product after trimming, peeling, or cooking, which affects the true cost per usable pound.
Question 4: Which document authorizes a purchase before any goods are ordered?
- Invoice
- Purchase order (Correct answer)
- Receiving report
- Credit memo
Correct answer: Purchase order
A purchase order is a formal document issued before goods are ordered that authorizes a specific vendor to deliver specified items at agreed prices.
Question 5: Just-in-time (JIT) purchasing reduces:
- Employee overtime
- Inventory carrying costs and waste by receiving goods close to when they are needed (Correct answer)
- The need for purchase specifications
- Vendor negotiation time
Correct answer: Inventory carrying costs and waste by receiving goods close to when they are needed
JIT purchasing minimizes inventory on hand by receiving goods just before they are needed, reducing storage costs and spoilage risk.
Question 6: When evaluating vendors, a CCA should consider all of the following EXCEPT:
- Product quality and consistency
- Delivery reliability
- The vendor's marketing logo design (Correct answer)
- Pricing and payment terms
Correct answer: The vendor's marketing logo design
A vendor's marketing logo design is irrelevant to procurement decisions; quality, reliability, and pricing are the key evaluation factors.
CCA CCA Procurement & Purchasing 2
Which of the following best describes 'group purchasing' (GPO) in foodservice?