Question 1

OMK is a Russian steel firm that is expanding market abroad. The CPO desires to bring purchasing activities in line with the company’s ethos to be better and one step ahead. He and his team sum up 36 categories which cover approximately 90% of spend. He also establishes cross-functional teams that included anyone connected to the category. Each specification writing within a cross-functional team is treated as a project. Which of the following document should be preceded specification writing in each cross-functional team?

Options :

A : SoW

B : PID

C : Mindmap

D : BRD

Answer: B

Question 2

What are the three components needed to calculate the break-even point?

Options :

A : Variable costs, gross profit margin, and sales revenue

B : Fixed costs, contribution margin, and sales volume

C : Variable costs, contribution margin, and fixed costs

D : Fixed costs, variable costs, and selling price

Answer: D

Question 3

Due to increasing demand, a local restaurant is requesting its fish vendor to supply larger quantity. The restaurant manager also asks the vendor whether it is possible to reduce the total price by 5%. This is known as...?

Options :

A : Straight rebuy

B : New purchase

C : Modified rebuy

D : Capital purchase

Answer: C

Question 4

A charity is reviewing their spend and budget after an operation in flooded areas. They realise that the operators save money against the budgeting plan. This saving is known as...?

Options :

A : Negative variance

B : Positive variance

C : Positive budget

D : Negative budget

Answer: A

Question 5

Which of the following are most likely to negatively affect the suppliers’ bargaining power in a specific market? Select TWO that apply:

Options :

A : There are almost no threats of backward integration

B : Buyers incur high cost when they change their suppliers

C : There are no differences among suppliers' products

D : Many suppliers are intent on integrating buyers into their business

E : Substitute products are readily available in the market

Answer: C,E