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

A standard PO is a one-time order with defined quantity, price, and delivery terms for a specific purchase.

Question 2

A purchase requisition is considered 'urgent' when:

Accepted Answer

The required delivery date does not allow for normal lead time

Answer

Urgency is determined by delivery timelines that fall within or below standard procurement lead times.

Question 3

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

Accepted Answer

Individual departments or business units

Answer

Decentralized purchasing distributes purchasing authority to individual departments or business units rather than concentrating it centrally.

Question 4

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

Accepted Answer

Demand aggregation

Answer

Demand aggregation combines multiple small orders into one, leveraging volume discounts and reducing administrative costs.

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

A POA confirms the supplier acknowledges receipt of the PO and agrees to fulfill it under the stated terms.

(CPP) Certified Purchasing Professional Practice Test