CEH Purchasing and Procurement 2

Question 1

Which of the following best describes a 'receiving report' in the procurement process?

Accepted Answer

A document that records and verifies goods received against the purchase order

Answer

A vendor's catalog listing available products

Answer

A monthly summary of total purchasing expenditures

Answer

A request to return damaged goods to a vendor

Question 2

The 'three-way match' in accounts payable refers to matching which three documents?

Accepted Answer

Purchase order, receiving report, and vendor invoice

Answer

Invoice, delivery receipt, and vendor catalog

Answer

Budget request, purchase order, and department approval

Answer

Bid proposal, purchase order, and payment check

Question 3

What is 'value analysis' in housekeeping procurement?

Accepted Answer

Evaluating whether a product's function justifies its cost compared to alternatives

Answer

Calculating the resale value of used equipment

Answer

Analyzing vendor financial statements before signing a contract

Answer

Determining the dollar value of lost or stolen supplies

Question 4

Which type of vendor relationship involves a long-term partnership with a single supplier for a specific product category?

Accepted Answer

Sole-source or single-source procurement

Answer

Open-market buying

Answer

Spot purchasing

Answer

Reverse auction procurement

Question 5

In hospitality purchasing, what does 'FIFO' stand for and why is it important?

Accepted Answer

First In, First Out — ensures older stock is used before newer stock to reduce waste

Answer

Fixed Inventory, Fixed Output — maintains consistent supply levels

Answer

Flexible Invoicing, Fixed Order — allows vendor billing flexibility

Answer

Full Inspection, Final Output — requires quality checks before use

Question 6

When writing product specifications for purchasing, what is the primary goal?

Accepted Answer

To clearly describe the exact quality, size, and performance standards required

Answer

To limit the number of vendors who can bid

Answer

To increase the per-unit price for premium products

Answer

To establish a vendor's exclusive right to supply the property

Question 7

What is a 'capital expenditure' (CapEx) in the context of housekeeping procurement?

Accepted Answer

A significant investment in long-lasting assets such as equipment or furniture

Answer

A recurring monthly supply purchase

Answer

An emergency spend that exceeds the approved budget

Answer

A one-time vendor rebate applied to future orders