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Exam Code: 630-008
Exam Name: C.P.M. Module 4: Management
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630-008 Study Guide Total Q&A: 360 Questions and Answers
Last Update: 2014-05-06

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Exam Code: 630-005
Exam Name: C.P.M. Module 1: Purchasing Process
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630-005 Exam Dumps Total Q&A: 209 Questions and Answers
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Exam Code: 630-006
Exam Name: C.P.M. Module 2: Supply Environment
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630-006 Training online Total Q&A: 285 Questions and Answers
Last Update: 2014-05-06

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NO.1 Which piece of legislation is designed to prevent sellers from discriminating in price between buyers of
like grade and quality materials where the consequence of so doing tends to injure or destroy
competition?
A. The Clayton Act.
B. The False Claims Act.
C. The Davis-Bacon Act.
D. The Robinson-Patman Act.
Answer: D

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NO.2 You work as a purchaser at XXXX.com. You received two bids for the supply of materials. A third
supplier calls before the due date and requests an extension of time. What should you do?
A. Refuse to grant the extension for any reason.
B. Grant the extension if the supplier can prove that it is a small and disadvantaged supplier.
C. Grant the extension if the reasons are justifiable, and inform all other suppliers of the extension.
D. Grant the extension, because the purchaser should have at least 3 bids in order to have true
competition.
Answer: C

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NO.3 Which of the following is NOT a valid reason for a requisitioner to limit competition?
A. The requisitioner is seeking to fulfill requirements.
B. The requisitioner needs superior technical capabilities.
C. The requisitioner desires an exclusive catalogue number.
D. The requisitioner is seeking capital equipment replacement parts.
Answer: C

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NO.4 Which of the following would a purchaser NOT consider in evaluating the direct costs of producing a
product?
A. Direct labor rates.
B. Labor estimates.
C. Overhead rates.
D. Material.
Answer: C

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NO.5 Which of the following is NOT a valid reason for obtaining competitive bids?
A. Preselection of suppliers.
B. Product homogeneity.
C. Organization policy.
D. Legal requirements.
Answer: A

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NO.6 Which of the following are NOT required items in computing total cost in capital equipment
procurement analysis?
A. Production inventory investment.
B. Installation and start-up costs.
C. Warranty considerations.
D. Performance guarantees.
Answer: A

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NO.7 XXXX.com has a 10% profit margin before taxes and spends 50% of its sales dollar on materials. What
percentage reduction in material costs for XXXX.com to achieve an increase of 5% in sales?
A. 1%
B. 2.5%
C. 5%
D. 7.5%
E. 10%
Answer: A

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NO.8 Which of the following statements regarding the process of reviewing supplier samples and/or
demonstrations with user departments and functional departments such as quality, engineering, research,
and administration, are FALSE?
A. It increases the amount of time involved in making a buying decision.
B. It is an example of purchasing's role as a service function within the organization.
C. It reduces purchased prices by allowing purchasing to make the final buying decision.
D. It leads to improved quality because the supplier will have a better understanding of user requirements.
Answer: C

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