Purchasing and Procurement Flashcards
7 cards from real CEH 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 and Procurement flashcards as text
Which of the following best describes a 'receiving report' in the procurement process?
Answer: A document that records and verifies goods received against the purchase order
A receiving report documents that delivered goods match the purchase order in quantity and quality, providing an essential check in the procurement cycle.
The 'three-way match' in accounts payable refers to matching which three documents?
Answer: Purchase order, receiving report, and vendor invoice
The three-way match compares the purchase order, receiving report, and vendor invoice to ensure all three are in agreement before authorizing payment.
What is 'value analysis' in housekeeping procurement?
Answer: Evaluating whether a product's function justifies its cost compared to alternatives
Value analysis examines whether the price paid for a product is justified by its performance, often revealing opportunities to substitute less expensive alternatives without sacrificing quality.
Which type of vendor relationship involves a long-term partnership with a single supplier for a specific product category?
Answer: Sole-source or single-source procurement
Single-source procurement involves committing to one preferred vendor for a product category, often yielding better pricing, service, and consistency in exchange for volume commitment.
In hospitality purchasing, what does 'FIFO' stand for and why is it important?
Answer: First In, First Out — ensures older stock is used before newer stock to reduce waste
FIFO (First In, First Out) ensures that older supplies are consumed before newly received stock, minimizing waste from expiration or deterioration.
When writing product specifications for purchasing, what is the primary goal?
Answer: To clearly describe the exact quality, size, and performance standards required
Detailed product specifications ensure all vendors bid on identical criteria, enabling fair price comparison and guaranteeing the property receives products that meet its operational needs.
What is a 'capital expenditure' (CapEx) in the context of housekeeping procurement?
Answer: A significant investment in long-lasting assets such as equipment or furniture
Capital expenditures are major investments in durable assets like commercial washers or floor machines that provide value over multiple years, as opposed to everyday consumable supplies.