CPM CPM Technology and Information Systems in Purchasing 2

Question 1

A purchase order management system helps organizations primarily by:

Accepted Answer

Tracking, approving, and managing purchase orders throughout their lifecycle

Answer

PO management systems automate order creation, route approvals based on spending thresholds, track order status, and match receipts to invoices for efficient processing.

Question 2

What is a three-way match in accounts payable and purchasing?

Accepted Answer

Verifying that the purchase order, receiving report, and supplier invoice agree before payment

Answer

Three-way matching validates that the PO quantity and price, goods receipt quantity, and supplier invoice all agree before authorizing payment, preventing errors and fraud.

Question 3

Which technology uses algorithms to automatically route purchase requisitions through the correct approval chain based on rules?

Accepted Answer

Workflow automation

Answer

Workflow automation engines apply pre-configured business rules to route requisitions and POs to the right approvers based on dollar thresholds, commodity type, or department.

Question 4

Robotic Process Automation (RPA) in procurement can be used to:

Accepted Answer

Automate repetitive tasks such as invoice data entry and PO creation

Answer

RPA bots execute high-volume, rule-based procurement tasks—like extracting invoice data, matching documents, and updating ERP records—faster and with fewer errors than manual processing.

Question 5

What is the primary advantage of using cloud-based procurement software over on-premise systems?

Accepted Answer

Cloud systems offer faster deployment, automatic updates, and lower upfront IT investment

Answer

Cloud procurement platforms reduce capital expenditure on hardware, are updated automatically by the vendor, and can be deployed and scaled faster than on-premise installations.

CPM - Certified Purchasing Manager Practice Test

CPM - Certified Purchasing Manager Practice Test

CPM CPM Technology and Information Systems in Purchasing 2