The Procurement ProcessMultiple Answer QuestionsWhich of the following statements about purchasing organizations are correct?Which of the following are account assignment categories?Materials designated as __________ can be withdrawn only for sampling or for scrap.Material documents consist of a header and an items section. Which of the following are included in the items section?Chapter 4The Procurement ProcessMultiple Answer Questions 1. Which of the following are organizational elements in purchasing?a. Shipping pointb. Company codec. Vendorsd. Materialse. PlantAnswer: b, e Difficulty: Easy Page Reference: 2Section: Organizational Data Practice:2. Which of the following statements about storage locations are true?a. A storage location must be assigned to a plantb. A storage location can be assigned to more than one plantc. A client can have more than one storage locationd. A plant can have more than one storage locatione. A storage location can hold only materials with a stock status of unrestricted use Answer: a, c, d Difficulty: Medium Page Reference: 2Section: Storage Location Practice: Yes3. Which of the following are organizational elements in purchasing?a. Sales organizationb. Purchasing areac. Plantd. Vendore. Storage locationAnswer: c, e Difficulty: Easy Page Reference: 3Section: Storage Location Practice:4. Which of the following statements about purchasing organizations are correct?a. They negotiate conditions of purchase with vendorsb. They can purchase only for one companyc. They can purchase for multiple plantsd. They can purchase for multiple plants, but they must be within the same company codee. They identify a buyer or a group of buyersAnswer: a, c Difficulty: Medium Page Reference: 3 Section: Purchasing Organization Practice:5. A purchase order can be sent to which of the following?a. A vendorb. A customerc. A plantd. A purchasing organizatione. A purchasing groupAnswer: a, c Difficulty: Easy Page Reference: 6Section: Purchasing Group Practice: 6. Data for source determination are obtained from:a. A purchase orderb. Purchase info recordsc. A source listd. Contracts and agreementse. The vendor master recordAnswer: b, c, d Difficulty: Medium Page Reference: 6Section: Purchasing Organization Practice:7. Which of the following are master data that are related to the purchasing process?a. Material masterb. Vendor masterc. Vendor info recordsd. Purchasing organizatione. Customer masterAnswer: a, b, c Difficulty: Medium Page Reference: 7Section: Master Data Practice: Yes8. Which of the following are methods of valuing materials?a. Actual priceb. Standard pricec. Purchasing priced. Moving (average) pricee. Selling priceAnswer: b, d Difficulty: Difficult Page Reference: 8Section: Material Master Practice:9. Which G/L accounts are impacted by the goods receipt step of the procurement process?a. Accounts payableb. Goods receipt / invoice receipt accountc. Inventory accountd. Vendor accounte. Band accountAnswer: b, c Difficulty: Difficult Page Reference: 32Section: Goods Receipt Practice: 10. Which G/L accounts are impacted by the invoice verification step of the procurementprocess?a. Accounts payableb. Goods receipt / invoice receipt accountc. Inventory accountd. Vendor accounte. Bank accountAnswer: a, b, d Difficulty: Difficult Page Reference: 36Section: Invoice Verification Practice:11. Which of the following data categories are included in a purchasing info record?a. Freightb. Discountsc. Material numberd. Vendor addresse. TextsAnswer: a, b, e Difficulty: Easy Page Reference: 12Section: Purchasing Info Records Practice:12. Data from which of the following sources are automatically included in a purchase order?a. Vendor info recordb. Purchasing info recordc. Material masterd. Vendor mastere. Purchasing organizationAnswer: b, c, d Difficulty: Medium Page Reference: 12Section: Purchasing Info Records Practice:13. Which of the following are material types?a. Consumable materialb. Raw materialc. Packagingd. Consignment materiale. Non-valuated materialAnswer: a, b, c, e Difficulty: Medium Page Reference: 14Section: Account Determination Practice:14. Which of the following are account assignment categories?a. Assetb. Orderc. Cost centerd. Sales ordere. ProjectAnswer: a, b, c, d, e Difficulty: Easy Page Reference: 15Section: Account Determination Practice: Yes15. Materials designated as __________ can be withdrawn only for sampling or for scrap. a. Goods movementb. In-quality inspectionc. Blocked stockd. Material documente. Purchase info recordAnswer: b, c Difficulty: Medium Page Reference: 17Section: Stock Type or Status Practice:16. Material documents consist of a header and an items section. Which of the following are included in the items section?a. Document numberb. Movement typec. Material numberd. Storage locatione. Document dateAnswer: b, c, d Difficulty: Medium Page Reference: 18Section: Goods Movement Practice: Yes17. A purchase order can be created with reference to which of the following?a. Purchase orderb. Purchase requisitionc. Purchase info recordd. RFQe. Sales orderAnswer: a, b, d Difficulty: Medium Page Reference: 25Section: Order Processing Practice: Yes18. Which of the following are consequences of the goods receipt step in the procurement process?a. A material document is createdb. An accounting document is createdc. The purchase order history is updatedd. The document flow is updatede. The material master is updatedAnswer: a, b, c, e Difficulty: Difficult Page Reference: 30Section: Goods Receipts Practice: Yes19. Which of the following are key documents in purchasing?a. Material documentsb. Fl documentsc. CO documentsd. Purchase ordere. InvoiceAnswer: a, b, c, d, e Difficulty: Easy Page Reference: 21 Section: Process Practice:20. Which of the following organizational data are required when creating a purchaserequisition?a. Sales organizationb. Company codec. Storage locationd. Purchasing organizatione. Purchasing groupAnswer: b, d, e Difficulty: Easy Page Reference: 22 Section: Requirement Determination Practice:21. Which steps are involved in converting a purchase requisition into a purchase order?a. Source listb. Outline purchase agreementc. Storage locationd. Request for quotatione. QuotationAnswer: d, e Difficulty: Medium Page