CIM CIM Procurement & Purchasing Management 2

Question 1

Vendor qualification in procurement involves:

Accepted Answer

Evaluating and approving suppliers against capability and reliability criteria

Answer

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.

Question 2

A 'three-way match' in accounts payable verifies that:

Accepted Answer

The purchase order, receiving report, and supplier invoice all agree

Answer

The three-way match compares the PO, goods receipt, and vendor invoice to confirm quantities and prices are consistent before releasing payment.

Question 3

What is 'maverick spending' in a procurement context?

Accepted Answer

Unauthorized purchases made outside established procurement processes

Answer

Maverick spending occurs when employees bypass approved procurement channels or use non-contracted suppliers, resulting in higher costs and compliance failures.

Question 4

Which document does a supplier send to confirm acceptance of a buyer's purchase order?

Accepted Answer

Order acknowledgment

Answer

An order acknowledgment is the supplier's formal response confirming they have received, reviewed, and accepted the terms of the buyer's purchase order.

Question 5

A supplier scorecard is used primarily to:

Accepted Answer

Systematically evaluate supplier performance on KPIs like quality, delivery, and cost

Answer

A supplier scorecard tracks and quantifies supplier performance against agreed metrics, enabling fact-based reviews, corrective action, and sourcing decisions.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM CIM Procurement & Purchasing Management 2