Buyer I Examination Breakdown
Subject Areas:
Current Market Conditions
Purchasing Practices & Procedures
Purchasing Problems
Reading Comprehension
Records & Reports
Public Relations
Recommended Study Guides:
ARCO.
NLC.
ARCO.
KOCH.
KOCH.
ARCO.
NLC.
Buyer - Assistant Buyer
Purchasing Agent
Supervision Course
Civil Service Quizzer and Guide
Handbook of Test (Civil Service)
U. S. Professional Mid-Level Positions
Buyer
You may want to use any available resource materials relative to the above
subject areas.
Sample Test Questions
Current Market Conditions
1. Which of the following figures is of greatest direct interest to the industrial
buyer:
1.
2.
3.
4.
cost of living index
expenditures for new construction by industry
industrial production index
wholesale price index
2. The Gross National Product represents most nearly the total:
1. cost of goods sold adjusted for changes in the purchasing power of the
dollar
2. industrial production for the nation exclusive of the value of minerals mined
3. national expenditure for goods and services at current market prices
4. national income summarizing all earning by labor and property
3. The Consumer Price Index published by the Bureau of Labor Statistics does
not indicate the:
1.
2.
3.
4.
amount of money spent by consumers
average change in the price of goods
changes in the cost of services to the consumer
cost of living
4. Primary responsibility for the administration of the federal anti-trust laws,
such as the Sherman and the Clayton Acts, rests with the:
1.
2.
3.
4.
Attorney General
Federal Trade Commission
Interstate Commerce Commission
U.S. Department of Commerce
5. The American Standards Association is best known for:
1. assisting and coordinating the work of groups
2. establishing a code of purchasing ethics widely followed in the United States
3. preparing specifications for a wide range of industrial and agricultural
products
4. publishing a monthly newsletter which advises purchasing agents of
manufacturing changes in brand-name products
Purchasing Practices & Procedures
1. The basic distinction between a purchase requisition and a purchase order
is that one:
1. indicates that the prices on the vendors invoice agree with those on the
order while the other authorizes the vendor to furnish the item
2. indicates that the prices on the vendors invoice agree with those on the
requisition while the other requests that an item be ordered
3. represents a legal commitment by the vendee while the other requests the
buyer to make the purchase
4. represents a legal commitment by the vendee while the other vouches for
the proper completion of the purchase transaction
2. A buyer who wishes to purchase a small quantity of hardware telephones
several retail hardware stores in the neighborhood and asks for the price of
such items and when they can be delivered. The prices differ to a small extent.
The buyer makes his purchase from the store selling the items at the highest
price but offering the swiftest delivery.
The term which best describes such buying is buying:
1. cost and delivery
2. negotiated
3. open-offer
4. open market
3. If an agreement specifies "f.o.b." destination then the:
1. buyer is liable for freight charges and assumes the risk of loss due to quality
deterioration before the goods arrive at the destination
2. buyer is liable for freight charges but the seller assumes the risk of loss due
to quality deterioration before the goods arrive at the destination
3. seller is liable for freight charges and assumes the risk of loss due to quality
deterioration before the goods arrive at the destination
4. seller is liable for freight charges but the buyer assumes the risk of loss due
to quality deterioration before the goods arrive at the destination
Purchasing Problems
Each question or incomplete statement is followed by several suggested
answers or completions. Select the one that best answers the question or
completes the statement.
1. After an article is discounted at 25%, it sells for $375.
The original price of the article was:
1.
2.
3.
4.
$93.75
$350
$375
$500
2. Assume that you require 1440 pencils, packed 12 to the box, 24 boxes to
the carton.
Which of the following represents the lowest bid for these pencils:
1.
2.
3.
4.
20 cents per pencil
$65.00 per carton
2.70 per box less a 4% discount
$400 less a 3% discount
3. If erasers cost 8 cents each for the first 250, 7 cents each for the next 250,
and 5 cents for every eraser thereafter, how many erasers may be purchased
for $50.:
1.
2.
3.
4.
600
750
850
1000
4. Assume that a buyer saves $14. on the purchase of an item that is
discounted at 25%.
The amount of money that the buyer must pay for the item is:
1.
2.
3.
4.
$42
$52
$54
$56
Reading Comprehension
In the late fifties, the average American housewife spent $4.50 per day for a
family of four on food and 5.15 hours in food preparation, if all of her food was
home prepared; she spent $5.80 per day and 3.25 hours if all of her food was
purchased partially prepared, and $6.70 per day and 1.65 hours if all of her
food was purchased ready-to-serve.
Americans spent about 20 billion dollars for food products in 1941. They spent
nearly 70 billion dollars in 1958. They spent 25 percent of their cash income
on food in 1958. For the same kinds and quantities of food that consumers
bought in 1941 they would have spent only 16% of their cash income in 1958.
It is obvious that our food does cost more. Many factors contribute to this
increase besides the additional cost that might be attributed to processing.
Consumption of more expensive food items, higher marketing margins and
more food eaten in restaurants are other factors.
The Census of Manufacturers gives some indication of the total bill for
processing. The value added by manufacturing of food and kindred products
amounted to 3.5 billion of the 20 billion dollars spent for food in 1941. In the
year 1958, the comparable figure had climbed to 14 billion dollars.
1. According to the foregoing passage, the cash income of Americans in 1958
was most nearly _____ billion dollars.
1.
2.
3.
4.
11.2
17.5
70
280
2. According to the foregoing passage, if Americans bought the same kinds
and quantities of food in 1958 as they did in 1941, they would have spent
most nearly _____ billion dollars.
1.
2.
3.
4.
20
45
74
84
3. According to the foregoing passage, the percent increase in money spent for
food in 1958 over 1941 as compared with the percentage increase in money
spent for food processing in the same year:
1.
2.
3.
4.
was greater
was less
was the same
cannot be determined from the passage
4. In 1958, an American housewife who bought all of her food ready-to-serve
saved in time, as compared with the housewife who prepared all of her food at
home:
1.
2.
3.
4.
1.6 hours daily
1.9 hours daily
3.5 hours daily
an amount of time which cannot be determined from the foregoing passage
Records & Reports
1) Of the following, the most effective method for keeping the relationship of
ideas understandable in a report is to use:
(1)
(2)
(3)
(4)
adequate footnotes and references
qualifying statements
appropriate related materials
carefully defined terms
2) The chief purpose in preparing an outline for a report is usually to ensure
that:
(1) the report will be of desired length
(2) every point will be given equal emphasis
(3) principal and secondary points will be properly related to the framework of
the whole
(4) the language of the report will be appropriate to its content and that
technical terms will be clearly explained
3) The appendix of a report should contain:
(1) minority opinions
(2) all tabular presentations and footnotes
(3) controversial material which might bring about complications if included in
the body of the report
(4) material which although not essential to the understanding of the text, is
necessary as supporting evidence
4) When writing reports the simplest and most direct way of focusing the
readers attention upon the topic under discussion is to:
(1) put the topic idea in the first sentence of the paragraph
(2) place all important points in italics
(3) begin the report in a humorous vein
(4) use simple language
5) The basic reason for including an index in a report is to:
(1)
(2)
(3)
(4)
obviate the need for a table of contents
give proper credit to contributors
list related reports
facilitate reference to specific subjects
Public Relations
1) Suppose that you have been asked to answer a letter from a local board of
trade requesting certain information. You find that you cannot grant this
request. Of the following ways of beginning your answering letter, the best
way is to begin by:
(1)
(2)
(3)
(4)
quoting the laws or regulations which forbid the release of this information
stating that you are sorry that the request cannot be granted
explaining in detail the reasons for your decision
commending the organization for its service to the community
2) The public is most likely to judge personnel largely on the basis of their:
(1)
(2)
(3)
(4)
experience
training and experience
civic mindedness
manner and appearance while on duty
3) In a governmental agency, the basic objective of being directly concerned
with public relations should be to:
(1)
(2)
(3)
(4)
promote the most efficient administration of the agency
reduce annual reports which will be acceptable to the public
increase the size of the agency
broaden the "score and activities" of the agency
4) Which of the following has the least effect on a city departments public
relations:
(1)
(2)
(3)
(4)
fluctuations in employment
amount of budget
organization plan of department
size of department
5) The main advantage for good sound public relations is to:
(1) build up a good feeling and understanding between the department and
the public
(2) gain public support for wage increases and better working conditions
(3) increase public interest in building projects
(4) attain a friendly and sympathetic press
6) In dealing with the public it is helpful to know that generally most people
are more willing to do that for which they:
(1)
(2)
(3)
(4)
are not responsible
understand the reason
will be given a little assistance
must learn a new skill
Answers to Sample Test Questions / Buyer I
Current Market Conditions
1) 4
2) 3
3) 1
4) 2
5) 1
Purchasing Practices & Procedures
1) 3
2) 4
3) 3
Purchasing Problems
1) 4
2) 1
3) 2
4) 1
Reading Comprehension
1) 4
2) 2
3) 2
4) 3
Records & Reports
1) 3
2) 3
3) 4
4) 1
5) 4
Public Relations
1) 3
2) 4
3) 3
4) 4
5) 1
6) 2