Purchase Requisition & Order Processing Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Purchase Requisition & Order Processing flashcards as text
Which scenario BEST illustrates 'order splitting' as an ethical concern in procurement?
Answer: Breaking one large purchase into multiple small orders to avoid competitive bidding thresholds
Order splitting to circumvent competitive bidding thresholds is an unethical practice that violates procurement policy and reduces transparency.
Which of the following fields is LEAST likely to appear on a standard purchase requisition form?
Answer: Supplier's bank account number
Supplier banking information is never collected on a purchase requisition; it is handled separately through accounts payable vendor setup.
What is the role of a 'confirmation purchase order' in procurement?
Answer: It is issued after an emergency verbal or phone order to create a paper trail
A confirmation PO documents an emergency purchase made verbally or by phone, creating a formal written record after the fact.
Which metric BEST measures the efficiency of the purchase order cycle time?
Answer: Average number of days from requisition receipt to PO issuance
PO cycle time, measured from requisition receipt to PO issuance, directly reflects procurement process efficiency.
A receiving report discrepancy occurs when the quantity received differs from the PO quantity. The FIRST action the receiving team should take is:
Answer: Notify the purchasing department and document the discrepancy
Discrepancies must be documented and communicated to purchasing first so the issue can be investigated and resolved with the supplier.
Which purchase order type is MOST appropriate for a multi-year maintenance contract with monthly service deliveries?
Answer: Blanket PO
A blanket PO covers recurring purchases over an extended period under pre-agreed terms, making it ideal for ongoing service contracts.
In the context of purchase order terms and conditions, 'FOB Destination' means:
Answer: The supplier retains ownership until goods reach the buyer's location
FOB Destination means the supplier retains title and risk until the goods are delivered to the buyer's specified destination.