Answer all the following: a. The quoted price should exclude transportation cost
ID: 334477 • Letter: A
Question
Answer all the following:
a. The quoted price should exclude transportation costs
T F
b. Longer lead time may permit a cheaper form of transportation
T F
c. Buying from nearby suppliers saves shipping charges and reduces the hazards of transportation
T F
d. When the purchaser accepts the supplier's acknowledgement the terms are always those specified in the original order form
T F
e. The purchase order need not cover specifics such as provisions about cancellations, inspection, and the disposition of defective goods
T F
f. The buying firm should closely monitor the promised delivery dates of its suppliers
T F
g. Buyers should know whether their suppliers use statistical methods to control quality
T F
h. The purchasing firm must always establish its own regular inspection and sampling plan to provide proper assurance of quality
T F
i. Small orders may be telephoned to a supplier and later combined in a monthly order
T F
j. A check should never be attached to a purchase order
T F
k. Reducing rush purchases reduces costs
T F
l. Local sources are often the best sources in terms of variety, quantities, and price
T F
m. Negotiation of an order in the seller's slack season can sometimes provide purchase cost savings
T F
n. Some cash discounts should be declined to reduce cost of purchases
T F
o. The seller always permits a cash discount period to be computed from invoice date or date of receipt of materials, whichever is later
T F
Explanation / Answer
a.True
b.True
c.True
d.True
e.False
f.True
g.True
h. True
i. True
j. False
k. False
l. True
m. True
n. False
o. True