CIM Procurement & Purchasing Management Flashcards
6 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CIM Procurement & Purchasing Management flashcards as text
Vendor qualification in procurement involves:
Answer: Evaluating and approving suppliers against capability and reliability criteria
Vendor qualification is a formal assessment process that verifies a supplier meets defined standards for quality, financial stability, capacity, and delivery before they enter the approved supplier list.
A 'three-way match' in accounts payable verifies that:
Answer: The purchase order, receiving report, and supplier invoice all agree
The three-way match compares the PO, goods receipt, and vendor invoice to confirm quantities and prices are consistent before releasing payment.
What is 'maverick spending' in a procurement context?
Answer: Unauthorized purchases made outside established procurement processes
Maverick spending occurs when employees bypass approved procurement channels or use non-contracted suppliers, resulting in higher costs and compliance failures.
Which document does a supplier send to confirm acceptance of a buyer's purchase order?
Answer: Order acknowledgment
An order acknowledgment is the supplier's formal response confirming they have received, reviewed, and accepted the terms of the buyer's purchase order.
A supplier scorecard is used primarily to:
Answer: Systematically evaluate supplier performance on KPIs like quality, delivery, and cost
A supplier scorecard tracks and quantifies supplier performance against agreed metrics, enabling fact-based reviews, corrective action, and sourcing decisions.
Just-in-time (JIT) purchasing is designed to:
Answer: Receive materials only when needed for production to minimize inventory
JIT purchasing synchronizes material receipts with production schedules to eliminate excess on-hand inventory and reduce carrying costs.