LEAD

LEAD practice questions, page 6 of 7, with answer review and explanations.

Question 26

A supply manager would like to incorporate input (both positive and negative) from other departments into employee performance appraisals. Which of the following would be MOST applicable to this situation?

  1. Span of influence
  2. Multiple objectives
  3. 360-degree reviews
  4. Balanced scorecard

Question 27

PQR, Inc. does business with a number of overseas suppliers, but sells most of its finished goods in its own country. Recently, PQR’s main software supplier made headlines in its home country for using child labor. So far, the story has not made the news in PQR’s country. In this situation, which of the following should PQR do?

  1. Publish the agreements with the supplier where the terms and conditions stipulate that the supplier not use child labor on PQR’s website
  2. Drop the software supplier and source with another one, so that PQR can state it has already addressed the issue by the time its customers learn of it
  3. Investigate the public relations outcome of the story, determine the risk to organization, and develop a risk management plan
  4. Ignore the headlines, as they may be distortions, and most of PQR’s customers are unlikely hear the story

Question 28

During an internal audit of the sourcing function, which of the following questions would an auditor MOST likely seek to answer?

  1. “Are competitive bids obtained for purchases?”
  2. “Are supplier performance targets established for contracts?”
  3. “Are company-defined approval authority limits being adhered to?”
  4. “Are items marked as received prior to invoice payment?”

Question 29

PQR, Inc. is a toy manufacturer with a strong customer base. PQR develops a new product line which encourages children to solve puzzles and learn about scientific subjects. The company would like to use these toys to expand PQR’s market into public schools. This expansion will require compliance with government standards for small and disadvantaged business requirements. PQR’s supply manager is appointed to lead a cross-functional team to determine whether such goals are achievable. Which of the following is the FIRST step the supply manager should take?

  1. Investigate competitors to determine best practices in the industry
  2. Attend professional development workshops on doing business with government entities
  3. Develop a scope and assign team members to research government requirements on inclusion
  4. Develop a structure and timeframe for reporting the team’s findings to top management

Question 30

The standard cost for a certain raw material is $1.20 per pound. A supply manager purchases 50,000 pounds of this material from Supplier A at $1.30 per pound, and 30,000 pounds from Supplier B at $1.10 per pound. What is the purchase price variance for this raw material?

  1. $2,000
  2. $5,000
  3. $0
  4. −$3,000