CPP Purchase Requisition & Order Processing 3

Question 1

Which type of purchase order is issued for a specific one-time purchase with a defined quantity and price?

Accepted Answer

Standard PO

Answer

Blanket PO

Answer

Standing order

Answer

Contract PO

Question 2

A purchase requisition is considered 'urgent' when:

Accepted Answer

The required delivery date does not allow for normal lead time

Answer

It is submitted by a senior manager

Answer

The item cost exceeds the department budget

Answer

The supplier is on the approved vendor list

Question 3

In a decentralized purchasing model, who typically has authority to issue purchase orders?

Accepted Answer

Individual departments or business units

Answer

Only the central procurement department

Answer

Only the CFO for orders above $500

Answer

An external procurement service provider

Question 4

Which term describes the practice of consolidating multiple small requisitions into a single purchase order?

Accepted Answer

Demand aggregation

Answer

Order splitting

Answer

Maverick buying

Answer

Rush ordering

Question 5

A purchase order acknowledgment (POA) from a supplier serves to:

Accepted Answer

Confirm the supplier has received and accepted the PO terms

Answer

Replace the need for a formal contract

Answer

Authorize payment to the supplier

Answer

Request a price revision from the supplier

Question 6

Which of the following BEST describes 'maverick spending' in procurement?

Accepted Answer

Purchases made outside approved channels without a purchase order

Answer

Purchases made using a corporate procurement card

Answer

Emergency purchases approved by two managers

Answer

Purchases exceeding the annual budget by 5%

Question 7

Which document in the procure-to-pay cycle triggers payment to the supplier?

Accepted Answer

Supplier invoice matched to PO and receiving report

Answer

Purchase requisition

Answer

Request for quotation

Answer

Bill of lading