SITXINV003 Purchase Goods: Written Quiz Assessment Answer

Question :

SITXINV003 Purchase goods

Written Quiz

Question 1:

The general process for determining purchasing requirements includes:

(Answer true or false in space provided)

	True or False
Determine items required for operations in conjunction with relevant personnel.
Assess the quality and suitability of stock on hand.
Avoid wastage and unnecessary ordering by using appropriate existing stock.
Forecast how much of each item you need to order.
Determine any price limitations for the purchasing.
Determine alternative products in case what you require is not available.
Develop purchase lists and prioritise the purchases.

Question 2:

Before placing an order in tourism, hospitality and events operations, you may need to seek approval or input from the following personnel:

(Tick the correct answers)

Supervisor
General Manager
Chef/head chef
Department manager
Stores personnel
Human Resources Manager
Event coordinator
Operations manager

Question 3:

The following documentation could form the basis for identifying purchasing requirements and specifications in catering operations:

(Tick the correct box indicating true or false)

	True	False
The menu can form the basis of ordering.
Individual recipes and standard yield information can be used.
For buffets usually Banquet Analysis Sheets will collate the purchasing requirements for all items on the menu.
Requests from all partie chefs indicate the purchasing requirements.

Question 4:

The following documentation could form the basis for identifying purchasing requirements and specifications in an events business:

(Tick the correct answers)

Buffet designs
Event orders
Special requests from sponsors
Running sheets

Question 5:

The following documentation can be used to identify purchasing requirements in a hotel:

(Tick the correct answers)

Occupancy lists
Customer profiles
Reservation profiles
Special requests/VIP lists

Question 6:

The following procedures must be followed to identify stock on hand before ordering to avoid wastage:

(Answer true or false in space provided)

	True or False
The frequency of purchasing varies depending on exact needs.
Each business will only hold the exact amount of stock items needed for the day ahead.
Excess stock can spoil or go off, will be a negative impact on the cashflow, or there are restrictions to how much stock can be stored on site.
It is essential to identify stock levels before order as most establishments have no stock control measures in place.
In essence what is needed is the total list of requirements then an analysis of the existing stock levels to determine the actual purchasing needs.
Existing stock must be identified first and considered in the purchasing order to prevent any wastage.

Question 7:

The following forecast tools can be used to estimate the anticipated amounts of purchases:

(Tick the correct answers)

Moving Average
Guessed Estimates
Popularity Index
Sales Forecasts
Quantities Previously Purchased
Yield Tests

Question 8:

Match the forecasting method for determining purchasing requirements to the relevant explanations:

Moving Average		a measurement of the proportion of total sales and is expressed as a percentage.
Popularity index	Purchased weight – Usable weight = Production loss
Sales Forecast	e.g. Forecast = (month 1 + month 2 + month 3) divided by 3
Yield Test	sales reports, occupancy reports and other indicators of past sales can be used as the basis for projecting future purchasing requirements.

Question 9:

Calculate the moving average for next month based on the following sales figures for tour satchels:

March – 2875

April – 3173

May – 3324

Moving Average for June:

______________

Question 10:

The Breakfast supervisor asks you to order enough Valencia oranges to produce 10.000 litres of fresh orange juice. She tells you that the current type of oranges available yield approximately 0.400 litres per kg. What quantity do you need to order?

_____________

Question 11:

How do job costings directly affect price limitations?

(Answer true or false in space provided)

	True or False
Budgets drive all businesses and these must be considered in a holistic fashion for the business to ensure profitability.
Each function, tour, drink or recipe must make a profit and therefore need be costed correctly.
If a product on offer in an establishment is correctly calculated there is no requirement for purchase price guidelines.
In order to ensure profitability of each product or service offered in an organisation, the purchase price guidelines are defined to achieve the desired profit margin for the product or service.
Most jobs require a quote first and it is important to list all details, e.g. rental cost, food cost, staff cost, other related costs such as equipment hire, electricity and ancillary costs.
For events other associated costs such as entertainment or a music band, jugglers or other acts or performers may need to be considered.

Question 12:

Match the key factors which must be considered when developing purchase lists to the correct requirements:

Date required		determine the requirements based on price and quality considerations as well as customer expectations
Quality required	check on availability of products and appropriate supply choices. Contracts must be considered
Shelf life	consider perishables and shelf life as well as spoilage factor
Stock levels	allow for sufficient delivery time and check availability
Suppliers	check on existing levels and minimum stock levels

Question 13:

Match the factors which must be considered before selecting a supplier to the relevant details:

Product range		what is the service level guarantee?
Availability	is it extensive enough? Can they supply across a range of product needs or specific needs only?
Service provision	is it competitive? Remember cheapest may not always be the best!
Reliability	what is their reputation?
Price	HACCP needs, daily deliveries, deliveries at specific times, etc.
Specific requirements	are there any seasonal impacts or supply issues?

Question 14:

What is the purpose of a preferred supplier? How is a preferred supplier selected?

(Tick the correct box indicating true or false)

	True	False
Many businesses have a preferred supplier list, which details which supplier/s should be chosen for each item or category of items to be supplied.
The preferred supplier list should always be your first choice when sourcing suppliers, as your business has an existing relationship with them.
A preferred supplier is generally selected on the basis of offering the cheapest price for a locked-in period.
In order to become a preferred supplier, the business generally conducts credit and trade checks on the supplier.
Before a supplier is selected the business implements payment and price terms, negotiates agreed mechanisms for faulty goods returns and has set Key performance indicators for the relationship.

Question 15:

The following considerations may be applied when reviewing or choosing suppliers:

(Tick the correct answers)

Existing suppliers for all products with an analysis of the service and pricing
Other suppliers in the market place that could provide the services and products needed
Location of suppliers – local, state and interstate as well as online including overseas
Wholesale and retail suppliers
Recommendations or referrals from other businesses
The incentives they offer you if you choose to purchase their products.

Question 16:

Most businesses have defined organisational procedures for purchasing of goods which may include:

(Answer true or false in space provided)

	True or False
Each enterprise will have specific rules in regards to ordering or negotiating supplies.
Handling negotiations and contractual arrangements is mostly done by management staff such as the business owner, general or operations manager, restaurant manager, head chef or maître d’hôtel.
The common guidelines for purchasing in an establishment include the type of goods, list of suppliers and authorities in regards to purchasing.
In many organisations the head chef, headwaiter or other department heads may be able to purchase goods up to certain monetary limits or limits set out in the monthly budget.
In small businesses supplies are generally ordered as required and checked against budget at the end of the financial year.
Organisational processes often apply to the systems such as requirement for purchase orders; invoicing and relevant checks; as well as requisition procedures and all associated documentation.
Good practice usually requires that the relevant authority is obtained before any purchase can be made.

Question 17:

What are the key aspects of providing precise specifications to suppliers when ordering products?

(Tick the correct answers)

A key task for any business that orders goods is to develop precise specifications in order to avoid miscommunication with suppliers and to ensure consistency.
Providing suppliers with specifications will ensure that all products will be received to standard on every delivery.
All industries have specific terminology and defined specifications will avoid confusion or incorrect product or service supply.
Common specifications relate to size, quantity, quality grade, vintage, temperature requirements, price limitations and specifications to industry standards like Ausmeat standards etc.

Question 18:

The following aspects need to be considered to ensure sufficient supply provisions and stability of prices for goods:

(Tick the correct box indicating true or false)

	True	False
All business needs must be considered to ensure that there are sufficient stock levels for the ongoing operations.
As the business often cannot hold excessive stock it is essential to ensure that suppliers can deliver supplies within timeframes that accommodate the business’ needs.
Prices for goods must be relatively stable as many businesses are unable to change sale prices daily in line with commodity price fluctuations.
You must have a par stock of non-perishable supplies to cover at least a 2 month trading period to prevent any negative effects from limited supplies or price fluctuations.
Droughts, thunderstorms or floods impact on harvests and prices often rise due to limited availability of product, or difficulty of delivering products.
Businesses can limit the effects from price fluctuations by having annual supply contracts with guaranteed prices and by amending the product offerings with different products or cheaper alternatives.

Question 19:

How should you deal with price changes at short notice and requirements for negotiating prices?

(Answer true or false in space provided)

	True or False
Price negotiations are a simple matter to finalise as there is ample competition in the market.
Price negotiations are always delicate and are normally handled by experienced staff or the General Manager.
Price negotiations should be handled by the individual staff member that makes purchases in each department or the organisation.
Some suppliers may change prices at short notice and may inform line staff or even stores staff.
Most businesses will have processes in place to alert supervisory staff of changes and they in turn will contact the supplier to negotiate changing costs.
If you become aware of changes in sudden changes in prices or other difficulties associated with purchasing, you should alert your supervisor who will determine the appropriate thing to do.

Question 20:

The following procedures can be used to check the quality of goods from a potential supplier:

(Tick the correct answers)

Obtain, inspect or test a sample product
Talk to your industry connections
Obtain references
Request a quality assurance guarantee
Define specification standards

Question 21:

The following details need to be checked when purchasing goods directly from a supplier:

(Tick the correct answers)

Is the item correct?
Is the weight correct?
Is the quality correct?
Is the price correct?
Are there better choices from competitors?
Have the item prices been added correctly?
Are all details on the invoice correct?

Question 22:

Match the type of stock control documentation to the relevant descriptions:

Requisition form		record of the stock held within a section of the store, or ‘bin’
Stock transfer form	details the type and amount of stock to be transferred from 1 department to another
Bin card	used to record the amount of stock on hand for tracking periodic usage or for comparison to computerised records
Stocktake sheet	record of the amount and type of goods received from the supplier
Purchase order	record of the amount and type of goods ordered from a supplier
Delivery docket	details the type and amount of stock to be issued to different departments by the store

Question 23:

Which of the following are goods you might need to order?

(Tick the correct answers)

Furniture
Alcoholic and non-alcoholic beverage items
Linen and housekeeping supplies
Equipment
Cleaning materials and chemicals
Event supplies
Vouchers and tickets

Answer :

SITXINV003Purchase goods

Written Quiz

Question 1:

The general process for determining purchasing requirements includes:

(Answer true or false in space provided)

	True or False
Determine items required for operations in conjunction with relevant personnel.	True
Assess the quality and suitability of stock on hand.	False
Avoid wastage and unnecessary ordering by using appropriate existing stock.	False
Forecast how much of each item you need to order.	True
Determine any price limitations for the purchasing.	True
Determine alternative products in case what you require is not available.	False
Develop purchase lists and prioritise the purchases.	True

Question 2:

Before placing an order in tourism, hospitality and events operations, you may need to seek approval or input from the following personnel:

(Tick the correct answers)

Supervisor
General Manager
Chef/head chef
Department manager
Stores personnel
Human Resources Manager
Event coordinator
Operations manager

Question 3:

The following documentation could form the basis for identifying purchasing requirements and specifications in catering operations:

(Tick the correct box indicating true or false)

	True	False
The menu can form the basis of ordering.
Individual recipes and standard yield information can be used.
For buffets usually Banquet Analysis Sheets will collate the purchasing requirements for all items on the menu.
Requests from all partie chefs indicate the purchasing requirements.

Question 4:

The following documentation could form the basis for identifying purchasing requirements and specifications in an events business:

(Tick the correct answers)

Buffet designs
Event orders
Special requests from sponsors
Running sheets

Question 5:

The following documentation can be used to identify purchasing requirements in a hotel:

(Tick the correct answers)

Occupancy lists
Customer profiles
Reservation profiles
Special requests/VIP lists

Question 6:

The following procedures must be followed to identify stock on hand before ordering to avoid wastage:

(Answer true or false in space provided)

	True or False
The frequency of purchasing varies depending on exact needs.	False
Each business will only hold the exact amount of stock items needed for the day ahead.	False
Excess stock can spoil or go off, will be a negative impact on the cashflow, or there are restrictions to how much stock can be stored on site.	True
It is essential to identify stock levels before order as most establishments have no stock control measures in place.	True
In essence what is needed is the total list of requirements then an analysis of the existing stock levels to determine the actual purchasing needs.	True
Existing stock must be identified first and considered in the purchasing order to prevent any wastage.	True

Question 7:

The following forecast tools can be used to estimate the anticipated amounts of purchases:

(Tick the correct answers)

Moving Average
Guessed Estimates
Popularity Index
Sales Forecasts
Quantities Previously Purchased
Yield Tests

Question 8:

Match the forecasting method for determining purchasing requirements to the relevant explanations:

Moving Average		A measurement of the proportion of total sales and is expressed as a percentage.
Popularity index	Purchased weight – Usable weight = Production loss
Sales Forecast	e.g. Forecast = (month 1 + month 2 + month 3) divided by 3
Yield Test	Sales reports, occupancy reports and other indicators of past sales can be used as the basis for projecting future purchasing requirements.

Question 9:

Calculate the moving average for next month based on the following sales figures for tour satchels:

March – 2875

April – 3173

May – 3324

Moving Average for June:

______________

Question 10:

_____________

Question 11:

How do job costings directly affect price limitations?

(Answer true or false in space provided)

	True or False
Budgets drive all businesses and these must be considered in a holistic fashion for the business to ensure profitability.	False
Each function, tour, drink or recipe must make a profit and therefore need be costed correctly.	True
If a product on offer in an establishment is correctly calculated there is no requirement for purchase price guidelines.	False
In order to ensure profitability of each product or service offered in an organisation, the purchase price guidelines are defined to achieve the desired profit margin for the product or service.	True
Most jobs require a quote first and it is important to list all details, e.g. rental cost, food cost, staff cost, other related costs such as equipment hire, electricity and ancillary costs.	True
For events other associated costs such as entertainment or a music band, jugglers or other acts or performers may need to be considered.	False

Question 12:

Match the key factors which must be considered when developing purchase lists to the correct requirements:

Date required		determine the requirements based on price and quality considerations as well as customer expectations
Quality required	Check on availability of products and appropriate supply choices. Contracts must be considered
Shelf life	consider perishables and shelf life as well as spoilage factor
Stock levels	allow for sufficient delivery time and check availability
Suppliers	check on existing levels and minimum stock levels

Question 13:

Match the factors which must be considered before selecting a supplier to the relevant details:

Product range		What is the service level guarantee?
Availability	Is it extensive enough? Can they supply across a range of product needs or specific needs only?
Service provision	Is it competitive? Remember cheapest may not always be the best!
Reliability	What is their reputation?
Price	HACCP needs, daily deliveries, deliveries at specific times, etc.
Specific requirements	Are there any seasonal impacts or supply issues?

Question 14:

What is the purpose of a preferred supplier? How is a preferred supplier selected?

(Tick the correct box indicating true or false)

	True	False
Many businesses have a preferred supplier list, which details which supplier/s should be chosen for each item or category of items to be supplied.
The preferred supplier list should always be your first choice when sourcing suppliers, as your business has an existing relationship with them.
A preferred supplier is generally selected on the basis of offering the cheapest price for a locked-in period.
In order to become a preferred supplier, the business generally conducts credit and trade checks on the supplier.
Before a supplier is selected the business implements payment and price terms, negotiates agreed mechanisms for faulty goods returns and has set Key performance indicators for the relationship.

Question 15:

The following considerations may be applied when reviewing or choosing suppliers:

(Tick the correct answers)

Existing suppliers for all products with an analysis of the service and pricing
Other suppliers in the market place that could provide the services and products needed
Location of suppliers – local, state and interstate as well as online including overseas
Wholesale and retail suppliers
Recommendations or referrals from other businesses
The incentives they offer you if you choose to purchase their products.

Question 16:

Most businesses have defined organisational procedures for purchasing of goods which may include:

(Answer true or false in space provided)

	True or False
Each enterprise will have specific rules in regards to ordering or negotiating supplies.	False
Handling negotiations and contractual arrangements is mostly done by management staff such as the business owner, general or operations manager, restaurant manager, head chef or maître d’hôtel.	True
The common guidelines for purchasing in an establishment include the type of goods, list of suppliers and authorities in regards to purchasing.	True
In many organisations the head chef, headwaiter or other department heads may be able to purchase goods up to certain monetary limits or limits set out in the monthly budget.	False
In small businesses supplies are generally ordered as required and checked against budget at the end of the financial year.	False
Organisational processes often apply to the systems such as requirement for purchase orders; invoicing and relevant checks; as well as requisition procedures and all associated documentation.	False
Good practice usually requires that the relevant authority is obtained before any purchase can be made.	True

Question 17:

What are the key aspects of providing precise specifications to suppliers when ordering products?

(Tick the correct answers)

A key task for any business that orders goods is to develop precise specifications in order to avoid miscommunication with suppliers and to ensure consistency.
Providing suppliers with specifications will ensure that all products will be received to standard on every delivery.
All industries have specific terminology and defined specifications will avoid confusion or incorrect product or service supply.
Common specifications relate to size, quantity, quality grade, vintage, temperature requirements, price limitations and specifications to industry standards like Ausmeat standards etc.

Question 18:

The following aspects need to be considered to ensure sufficient supply provisions and stability of prices for goods:

(Tick the correct box indicating true or false)

	True	False
All business needs must be considered to ensure that there are sufficient stock levels for the ongoing operations.
As the business often cannot hold excessive stock it is essential to ensure that suppliers can deliver supplies within timeframes that accommodate the business’ needs.
Prices for goods must be relatively stable as many businesses are unable to change sale prices daily in line with commodity price fluctuations.
You must have a par stock of non-perishable supplies to cover at least a 2 month trading period to prevent any negative effects from limited supplies or price fluctuations.
Droughts, thunderstorms or floods impact on harvests and prices often rise due to limited availability of product, or difficulty of delivering products.
Businesses can limit the effects from price fluctuations by having annual supply contracts with guaranteed prices and by amending the product offerings with different products or cheaper alternatives.

Question 19:

How should you deal with price changes at short notice and requirements for negotiating prices?

(Answer true or false in space provided)

	True or False
Price negotiations are a simple matter to finalise as there is ample competition in the market.	True
Price negotiations are always delicate and are normally handled by experienced staff or the General Manager.	True
Price negotiations should be handled by the individual staff member that makes purchases in each department or the organisation.	True
Some suppliers may change prices at short notice and may inform line staff or even stores staff.	False
Most businesses will have processes in place to alert supervisory staff of changes and they in turn will contact the supplier to negotiate changing costs.	True
If you become aware of changes in sudden changes in prices or other difficulties associated with purchasing, you should alert your supervisor who will determine the appropriate thing to do.	False

Question 20:

The following procedures can be used to check the quality of goods from a potential supplier:

(Tick the correct answers)

Obtain, inspect or test a sample product
Talk to your industry connections
Obtain references
Request a quality assurance guarantee
Define specification standards

Question 21:

The following details need to be checked when purchasing goods directly from a supplier:

(Tick the correct answers)

Is the item correct?
Is the weight correct?
Is the quality correct?
Is the price correct?
Are there better choices from competitors?
Have the item prices been added correctly?
Are all details on the invoice correct?

Question 22:

Match the type of stock control documentation to the relevant descriptions:

Requisition form		record of the stock held within a section of the store, or ‘bin’
Stock transfer form	details the type and amount of stock to be transferred from 1 department to another
Bin card	used to record the amount of stock on hand for tracking periodic usage or for comparison to computerised records
Stocktake sheet	record of the amount and type of goods received from the supplier
Purchase order	record of the amount and type of goods ordered from a supplier
Delivery docket	details the type and amount of stock to be issued to different departments by the store

Question 23:

Which of the following are goods you might need to order?

(Tick the correct answers)

Furniture
Alcoholic and non-alcoholic beverage items
Linen and housekeeping supplies
Equipment
Cleaning materials and chemicals
Event supplies
Vouchers and tickets

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SITXINV003 Purchase Goods: Written Quiz Assessment Answer

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