CEH Purchasing and Procurement 2

Question 1

Which of the following best describes a 'receiving report' in the procurement process?

Accepted Answer

A document that records and verifies goods received against the purchase order

Answer

A receiving report documents that delivered goods match the purchase order in quantity and quality, providing an essential check in the procurement cycle.

Question 2

The 'three-way match' in accounts payable refers to matching which three documents?

Accepted Answer

Purchase order, receiving report, and vendor invoice

Answer

The three-way match compares the purchase order, receiving report, and vendor invoice to ensure all three are in agreement before authorizing payment.

Question 3

What is 'value analysis' in housekeeping procurement?

Accepted Answer

Evaluating whether a product's function justifies its cost compared to alternatives

Answer

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.

Question 4

Which type of vendor relationship involves a long-term partnership with a single supplier for a specific product category?

Accepted Answer

Sole-source or single-source procurement

Answer

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.

Question 5

In hospitality purchasing, what does 'FIFO' stand for and why is it important?

Accepted Answer

First In, First Out — ensures older stock is used before newer stock to reduce waste

Answer

FIFO (First In, First Out) ensures that older supplies are consumed before newly received stock, minimizing waste from expiration or deterioration.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH Purchasing and Procurement 2