Checkup 4 Flashcards
(20 cards)
_______________________ may achieve lower costs for the firm.
Centralized purchasing
Because the purchasing units are smaller, a firm has __________ control over purchases when purchasing is decentralized.
less
Inventory accumulations are likely to take place when prices are expected to ____________.
rise
The primary advantage of decentralized purchasing is ___________________.
flexibility
___________________ are more likely when purchasing is centralized rather than decentralized.
Quantity discounts
Reciprocity limits ___________ in choosing suppliers.
flexibility
The purchasing department should (always, or not always) obtain the highest quality materials and equipment available.
not always
__________________ usually requires more personnel than centralized purchasing.
Decentralized purchasing
______________________________ may occur when purchasing is decentralized.
Unnecessary order duplications
When an order is placed, a purchase requisition is sent to the _________________________ by the requesting unit.
purchasing department
Two factors that may cause differences in prices among suppliers are _______________________ and __________________________.
quantity discounts; quality differences
The timeliness and dependability of ______________________ is important to a purchaser.
delivery
Two decisions related to purchasing decisions that manufacturing firms must make are the _________________________ decision and the ___________________________ decision.
make-or-buy; lease-or-purchase
Lease payments are usually made at the ____________________ of the lease year.
beginning
The primary advantage of ____________ purchasing is the amount of __________ exercised by upper management.
centralized; control
A primary advantage of leasing is that the initial ___________________ is unnecessary.
investment
Centralized purchasing is particularly effective when operations are _____________________ throughout its various divisions.
standard
In some cases, the operating unit is required to submit a requisition only if a ____________________ is exceeded.
dollar limit
Cumulative discounts are given when _____________ purchases for a specific period exceed a certain amount.
total
List 4 specifications that may be provided on a purchase requisition.
quantity; size; capacity; desired delivery date
