Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

is pm > ch12 > Flashcards

ch12 Flashcards

1
Q

1.Suppliers are those organizations or individuals who provide procurement services.

a.
TRUE

b.
FALSE

A

ANSWER:
TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

2.While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers.

a.
TRUE

b.
FALSE

A

ANSWER:
TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

3.Project procurement management consists primarily of two processes: assessing procurements and controlling procurements.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

4.If an organization has no need to buy any products or services from outside the organization, then it has no need to perform any of the procurement management processes.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

5.A single contract can include all three categories of contracts.

a.
TRUE

b.
FALSE

A

ANSWER:
TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

6.Indirect costs are those costs can be traced back to a project in a cost-effective way.

a.
TRUE

b.
FALSE

A

ANSWER:
FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

7.Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.

a.
TRUE

b.
FALSE

A

ANSWER:
FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

8.The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

9.In unit pricing, the total value of the contract is a function of the quantities needed to complete the work.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

10.All contracts should include specific clauses that take into account issues unique to the project.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

11.In an FPI contract, all of the risk is borne by the buyer.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

12.An FP-EPA contract carries the least risk for a supplier.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

13.Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

14.A company is considering whether to purchase or lease a piece of equipment for an upcoming project. The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease (including operating costs). If the company anticipates using the equipment for a total of 20 days, they will be indifferent as to whether or lease or purchase it.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

15.Contents of the procurement management plan vary with project needs.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

16.The main sections of an RFP can include the statement of work and schedule information.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

17.A key factor in evaluating bids, particularly for projects involving information technology, is the past performance record of the bidder.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

18.Reviewing performance records reduces the risk of selecting a supplier with a poor track record.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

19.In project procurement management, a main output of controlling procurements is a source selection criteria.

a.
TRUE

b.
FALSE

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

20.The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws.

a.
TRUE

b.
FALSE

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

21.The closing procurements process involves updating records to reflect final results and archiving information for future use.

a.
TRUE

b.
FALSE

A

TRUE

22
Q

22.Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

a.
TRUE

b.
FALSE

A

TRUE

23
Q

23.A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project. Which benefit does this characteristic of outsourcing provide an organization?

a.
reduces focus on its core business
b.
increases control over all aspects of projects that suppliers carry out.

c.
provides access to specific skills
d.
reduces dependency on suppliers

A

c.
provides access to specific skills

24
Q

24.Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which benefit does this offer an organization?

a.
reduction in costs
b.
increased flexibility

c.
increased accountability
d.
access to specific skills

A

a.
reduction in costs

25
Q

25.Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem. Which benefit does outsourcing primarily provide in such a scenario?

a.
reduces fixed and recurrent costs
b.
protects strategic information from being accessible to external suppliers

c.
increases accountability even without a written contract
d.
helps focus on an organization’s core business

A

d.
helps focus on an organization’s core business

26
Q

26.Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources. Which advantages does this characteristic of outsourcing provide organizations?

a.
offers control over all aspects of projects that suppliers carry out
b.
provides flexibility

c.
shifts accountability from external suppliers to internal staff
d.
helps avoid any form of dependency on suppliers

A

b.
provides flexibility

27
Q

27.What is one drawback of outsourcing?

a.
it does not provide access to specific skills or technologies
b.
it invariably results in an increase in both fixed and recurrent costs

c.
it can make an organization become overly dependent on particular suppliers.
d.
it cannot increase accountability of suppliers through a written contract

A

c.
it can make an organization become overly dependent on particular suppliers.

28
Q

28.What is the first step in project procurement management?

a.
closing procurement management.
b.
controlling procurements.

c.
conducting procurements.
d.
planning procurement management.

A

d.
planning procurement management.

29
Q

29.In project procurement management, which process involves determining what to procure, when, and how?

a.
closing procurements
b.
controlling procurements

c.
conducting procurements
d.
planning procurement management

A

d.
planning procurement management

30
Q

30.In project procurement management, which process involves obtaining seller responses, selecting sellers, and awarding contracts?

a.
conducting procurements
b.
closing procurements

c.
settling contracts
d.
planning procurement management

A

a.
conducting procurements

31
Q

31.Outputs of the _____ process consist of selected sellers and change requests.

a.
closing procurements
b.
conducting procurements

c.
planning procurement management
d.
controlling procurements

A

b.
conducting procurements

32
Q

32.Which process of project procurement management involves managing relationships with sellers, monitoring contract performance, making changes as needed, and closing contracts?

a.
negotiating procurements
b.
settling contracts

c.
deciding on the services to procure
d.
controlling procurements

A

d.
controlling procurements

33
Q

33.In project procurement management, which process involves completion and settlement of each contract, including resolution of any open items?

a.
planning procurement management
b.
controlling procurements

c.
negotiating procurements
d.
conducting procurements

A

b.
controlling procurements

34
Q

34.The procurement statements of work are an output of the _____ process of project procurement management.

a.
planning
b.
executing

c.
monitoring and controlling
d.
closing

A

a.
planning

35
Q

35.In project procurement management, obtaining seller responses, selecting sellers, and awarding contracts is part of the _____ process.

a.
planning
b.
conducting procurements

c.
controlling
d.
closing

A

b.
conducting procurements

36
Q

36.In project procurement management, which is an output of the conducting procurements process?

a.
make-or-buy decisions
b.
statements of work

c.
source selection criteria
d.
change requests

A

d.
change requests

37
Q

37.In project procurement management, which is an output of the planning process?

a.
change requests
b.
selected sellers

c.
resource calendars
d.
make-or-buy decisions

A

d.
make-or-buy decisions

38
Q

38.Which is true of lump-sum contracts?

a.
They incur a high degree of risk for the buyer.
b.
They involve a fixed total price for a well-defined product or service.

c.
They consist of a fee based on the satisfaction of subjective performance criteria.
d.
They are also known as cost-reimbursable contracts.

A

b.
They involve a fixed total price for a well-defined product or service.

39
Q

39._____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

a.
Firm-fixed-price
b.
Lump sum

c.
Cost-reimbursable
d.
Fixed-price incentive fee

A

c.
Cost-reimbursable

40
Q

40.In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

a.
FFP
b.
CPIF

c.
CPPC
d.
FPIF

A

b.
CPIF

41
Q

41.With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

a.
CPFF
b.
FPIF

c.
CPAF
d.
CPIF

A

a.
CPFF

42
Q

42.In which contract does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs?

a.
FPIF
b.
CPIF

c.
CPPC
d.
CPAF

A

c.
CPPC

43
Q

43.From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

a.
CPIF
b.
CPFF

c.
CPAF
d.
CPPC

A

d.
CPPC

44
Q

44.A(n) _____ contract carries the least risk for suppliers.

a.
CPPC
b.
FFP

c.
CPAF
d.
FP-EPA

A

a.
CPPC

45
Q

45.The _____ is a description of the work required for a procurement.

a.
RFQ
b.
RFP

c.
WBS
d.
SOW

A

d.
SOW

46
Q

46.A(n) _____ is a document used to solicit proposals from prospective suppliers.

a.
RFQ
b.
WBS

c.
RFP
d.
SOW

A

c.
RFP

47
Q

47.A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____.

a.
RFQ
b.
RFP

c.
WBS
d.
SOW

A

a.
RFQ

48
Q

48.After planning for procurement management, the next process involves ____.

a.
determining the evaluation criteria for the contract award
b.
developing procurement statements of work

c.
using expert judgement in planning
purchases and acquisitions
d.
sending appropriate documentation to potential sellers

A

d.
sending appropriate documentation to potential sellers

49
Q

49.In project procurement management, which is one of the main outputs of the conducting procurement process?

a.
selected seller
b.
procurement management plan

c.
procurement statement of work
d.
closed procurement

A

a.
selected seller

50
Q

50.The process of choosing suppliers or sellers is known as _____.

a.
source selection
b.
a bid

c.
WBS
d.
a change order

A

a.
source selection

is pm (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions