EMT Practice Test

1. Question Content...

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Question1: Which of the following is NOT part of the competitive bidding process?

Question2: You work as a purchaser at Pass4test.com. Your brother works as an engineer for a major supplier for Pass4test.com. Your brother asks you for input on a new product line that his company is developing. The product is quite similar to one that Pass4test.com currently buys from another company. Which of the following is the PRIMARY ethical issue that arises in this situation?

Question3: Which of the following is MOST suitable for a low-cost, high-volume item that is used by only one department within the organization but is used continuously at varying rates and is requisitioned frequently?

Question4: What is the GREATEST advantage provided by a pre-bid conference?

Question5: Which of the following is the LEAST adaptable to the life cycle costing method?

Question6: Which of the following is LEAST likely to be included in a department's standard contract document for service contracts?

Question7: Which of the following is the LEAST desirable contract dispute resolution option?

Question8: What does an implied warranty of merchantability mean?

Question9: You work as a seller for Pass4test.com. You hear a rumor that a major competitor is going out of business due to a weakening financial condition. You share this information with your customers, adding that the competitor's financial problems are causing major quality problems in their operations. What could the competitor sue you and Pass4test.com for, if these claims are not based on fact?

Question10: Which of the following statements regarding progress payments is FALSE?

Question11: When can a purchasing department disclose supplier proprietary information to others within the buying organization?

Question12: Which piece of legislation is designed to prevent well-financed itinerant contractors from successfully bidding on and winning federal government contracts and then transporting low-wage workers from distant points to displace local workers?

Question13: Which of the following is MORE relevant to single sourcing is based than cost issues?

Question14: Which of the following can a buyer and a supplier may do under the terms of the Uniform Commercial Code?

Question15: Which of the following statements is MOST accurate?

Question16: Which of the following is the PRIMARY document authorizing a purchasing department to buy specific goods or services?

Question17: Which of the following is generally NOT included in the cost analysis process?

Question18: On which of the following do most state and local governments establish a supplier base?

Question19: Purchasing should clearly understand the intended use of a product in order to determine if the description given in a purchase request is adequate and accurate. If there is any doubt, what should purchasing management do?

Question20: On which of the following is the following statement based?
A "material breach" on the part of the federal government does not preclude the contractor from continuing its work on behalf of the government, pending resolution of any request for relief, claim, appeal, or action arising under the contract.

Question21: Which of the following would be the LEAST affected if the purchasing department at Pass4test
.com is given insufficient time to procure a needed item or service?

Question22: Buyers are instructed to use specifications to describe needed products in terms of design and performance characteristics. Which of the following is this LEAST likely to result in?

Question23: Pass4test.com has annual revenues of $1.5 billion. Its profit is estimated to be $180 million in earnings before interest and tax. What should Pass4test.com do to achieve an increase in profitability of $60 million?

Question24: Which of the following would NOT be considered in the least total cost (LTC) supplier selection process?

Question25: Which of the following statements MOST accurately describes an expediting call rather than a follow-up call?

Question26: Which of the following would NOT be included in routine contract administration?

Question27: Which of the following is LEAST likely to be a problem in the inspection and acceptance of a contract for services?

Question28: Which of the following refers to the repayment of duties paid on materials that have been imported and then re-exported in a different form?

Question29: In which of the following situations may oral contracts NOT be acceptable according to the Uniform Commercial Code?

Question30: Which of the following represents the BEST way to prevent one or more suppliers' technological innovations from being locked out of the buyer's organization as a result of reducing a supplier base?

Question31: At which of the following times does the purchased raw material physically enters purchased goods inventory in a manufacturing stockless inventory program?

Question32: Which of the following statements is the LEAST accurate?

Question33: Which of the following specifications is MOST appropriate for the purchasing of subsystems and subassemblies?

Question34: Which of the following BEST describes a situation in which a client accepts the services of an accountant without an agreement concerning payment?

Question35: Which of the following is the LEAST important consideration in preparing product specifications?

Question36: Which of the following would generally NOT be accepted methods of payment for goods acquired through international procurement?

Question37: Which of the following is LEAST likely to require buyer visits to supplier plants during the qualification process?

Question38: Pass4test.com needs to replace a major software program used in many areas of the organization.
The existing software licenses will expire within the next year.
Extending these licenses is an option but not one that Pass4test.com favors. Which of the following is the BEST approach to take in this situation?

Question39: You work as a purchasing manager at Pass4test.com. A top executive at Pass4test.com is frequently involved with several charities. He calls you and says he would like to seek donations from Pass4test.com's major suppliers. On what basis would you discourage this?

Question40: Which of the following statements is FALSE?

Question41: Which of the following costs would NOT be reduced by efficient expediting?

Question42: Under which of the following situations is it MOST appropriate to use competitive bidding?

Question43: Which of the following is NOT a good reason for maintaining records of purchases?

Question44: Which of the following terms BEST describes a situation in which a buyer directly or indirectly benefits from his/her position or connections as an employee, or from the sale, purchase, or other activity of the company?

Question45: Which of the following BEST defines the concept of "sharp" buying practices?

Question46: Which of the following is the BEST approach for protecting information when attending a supplier demonstration of a proprietary manufacturing process?

Question47: Which of the following is the MAIN advantage of systems contracting?

Question48: Which of the following bonds are used to protect purchasers and their organizations?

Question49: Which of the following costs are NOT identified with the specific products or services of an organization?

Question50: Which of the following statements is TRUE?

Question51: Which of the following represents trade discounts that are structured as a sequence of individual discounts, such as 25, 10, and 5 percent?

Question52: Which of the following statements are TRUE? (Choose all that apply.)

Question53: Which of the following is the LEAST important in a supplier performance rating system?

Question54: What is MOST likely to be the current stage of the product development life cycle for a product that is going through frequent changes in specifications, resulting in the obsolescence of many inventoried items?

Question55: Which of the following should a buyer FIRST develop to counter continuing price increases of a specialty chemical?

Question56: What type of solicitation is represented by a request for bids using an approved products list?

Question57: Which of the following should be established in writing in order to avoid any confusion as to what event will trigger payment to a supplier?

Question58: Which of the following best describes a policy that limits the amount a senior buyer can spend on a single purchase order?

Question59: Which of the following should the role of legal counsel generally include in the preparation of a contract?

Question60: Which of the following is NOT used to measure a supplier's responsibility in public purchasing?

Question61: Which of the following are the MOST important results to measure each month using a supplier performance rating system? (Choose two.)

Question62: Which of the following is MOST likely to assure receipt of materials against the invoice from the supplier?

Question63: A purchaser at a research laboratory is working with scientists on a purchase agreement for a new generation of chemical analytic instrumentation. There is general agreement that a new instrument of this type can be made to perform to the extreme precision and sensitivity desired, but that such an instrument does not at present exist. The engineers at a major supplier believe that they can achieve this new level of precision with information given to them by the research laboratory staff.
The supplier requests a sizeable down payment for the order: 50% of total purchase cost of $1 million. In order to achieve the MOST benefit, how should the research laboratory defining its purchase requirements?

Question64: Which piece of legislation is designed to prevent monopolies by outlawing discrimination in pricing due to conspiracies or combinations that act in restraint of trade?

Question65: Which of the following publication provides the MOST complete data about a company's positions in the market and their comparative strengths within their industry?

Question66: For its impact on which of the following should price variances of purchased materials be forecasted?

Question67: Which of the following would define an organization that has various parts working well together in the development of specifications and performance criteria, thereby avoiding duplication and loss of time?

Question68: Which of the following is the LEAST likely to be included in a product file?

Question69: Which of the following would NOT be found in a materials budget for a special product?

Question70: Pass4test.com has placed an order that called for delivery to be F.O.B. Shipping Point, with Freight Allowed to Destination. On delivery the purchasing manager discovers that the material was damaged in transit. What should the purchasing manager do?

Question71: In which of the following dispute resolution methods is a dispute between buyer and eller turned over to a third party with neither buyer nor seller relinquishes their legal rights?

Question72: Which two of the following statements regarding the concept of order consignment are TRUE?
(Choose two.)

Question73: On which of the following would the evaluation of a supplier's ability to meet the requirements of a proposed be based? (Choose all that apply.)