The purchasing fundamentals test covers various aspects of the purchasing profession. Areas tested include understanding the purchasing function, working vocabulary, purchasing policies, inventory management, vendor management, negotiation skills, and technical skills. The test is appropriate for the test taker with one year of basic purchasing experience, but intermediate and advanced questions are included in order to give the test taker the opportunity to reveal advanced potential and skills. Ethics are an important aspect of purchasing and ethical test questions are included under the policy questions task set. Tests for Office Management Skills, Office Math Skills and Math Word Problems are also available. Total Questions 46 Question Types Multiple Choice Competencies Tested Purchasing VocabularyPurchasing FunctionPurchasing PoliciesInventory ManagementVendor ManagementTechnical Skills Tasks Tested Bill of MaterialsPurchase Order and Purchase RequisitionPrepare RFQMaintenance, Repair, and Operations ItemsUnderstand Payment TermsFamiliarity with Freight TermsCapital PurchaseLead TimeDetail of a Purchase OrderPurchasing ObjectivesWorking with Sales Department RequestsPurchase a New ProductKnowledge of Purchase OrdersExpediting an OrderPurchase Level AuthorityPurchase Order Follow-UpVendor InteractionsImportance of DocumentationRequest Return AuthorizationStatement of WorkPurchasing EthicsPurchasing Role in the Invoice ProcessDefective MaterialValue of Physical InventoriesWIP InventoryOpportunity CostFamiliarity with MRPInventory CostsReduce Chance of Out of StockReduce Vendor RiskGoal of Vendor NegotiationCompare Vendor QualityNegotiating LeverageEvaluate Vendor Financial HealthBuild Vendor RelationshipPurchasing RatesEvaluate Supplier Quality ControlInventory TurnsCalculate Inventory Months on HandPurchase SavingsTotal Purchase CostDetermine Purchase QuantityBreak-Even Cost AnalysisPurchase Requirements Including ScrapCalculate Price Percent IncreaseEconomic Order Quantity
