Purchasing Quiz

Sample Questions for C.P.M. Certification

The following quiz is representative of the types of questions asked in the C.P.M. (Certified Purchasing Manager) examinations.

1. A 1%10/Net30 cash discount is approximately equivalent to an annual interest rate of:
   a. 1.0%
   b. 10.3%
   c. 18.5%
   d. 36.0%
   
2. Compensation given to a distributor by a manufacturer because the distributor warehoused, advertised and distributed the product are called:
   a. Cash Discounts
   b. Quantity Discounts
   c. Trade Discounts
   d. Seasonal Discounts
   
   The handling of freight charges vary considerably from industry to industry. The most common events are:
   I. Common carriers are paid by the vendor
   II. Common carriers are paid by the customer
   III. Freight charges are added to the invoice
   IV. Freight charges are deducted from the invoice
   
3. When sales are made FOB shipping point, freight prepaid, the proper procedures are:
   a. I only
   b. I & III
   c. II only
   d. II & IV
   
4. An increase in the "Cost of Processing a Purchase Order" will cause a/an:
   a. Decrease in the EOQ
   b. Increase in the EOQ
   c. No change in the EOQ
   d. None of these
   
5. If a user requests a specific brand-name product, which of the following steps should the buyer take FIRST ?
   
   a. Attempt to negotiate a lower price with the supplier of the brand-name product.
   b. Search for competitive suppliers that furnish similar products.
   c. Appeal the request to higher purchasing management.
   d. Attempt to persuade the user to furnish performance specfications.
   

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