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Certificatecourse In Management Question Paper

Certificatecourse In Management

Course:Purchasing Supplies Management

Institution: Kenya Institute Of Management (Kim) question papers

Exam Year:2011

CERTIFICAT IN BUSINESS MANAGEMENT
SEPTEMBER 2011 EXAMINATION.

SUBJECT: PRINCIPLES OF ACCOUNTS: CBM 2/CCM2/CCM 101

DATE: 9TH SEPTEMBER 2011

TIME: 3 HOURS

INSTRUCTIONS:

1. Write your index number in the space provided in the answer booklet.
2. Answer any five questions.
3. All questions carry equal marks.
4. No writing should be done on this question paper.
5. Candidates who break KIM examination rules and regulations or commit any malpractice
will be disqualified.

1. a) Identify five main objectives of the purchasing function. ( 10 marks)

b) State important areas where purchasing function is supposed to relate with the
following departments closely.
i) Production department (5 marks)
ii) Finance department (5 marks)

2. a) State five important features that may appear on an LPO (Local Purchae Orders).
(10 marks)

b) Explain three important functions of a GRN (Goods Received Note). (6 marks)

c) Outline two usefulness of purchasing records. (4 marks)

3. a) Explain the factors to be considered in selecting a channel of distribution.
(10 marks)

b) State the factors to consider when packaging material from supplier to consumer.
(10 marks)

4. a) You have been given the responsibility as a purchasing officer of an organization
to purchase and receive materials for the organization. What will you do to make
sure you don't receive or buy substandard items? (10 marks)

b) State five advantages of multi soucing. (10 marks)

5. When an organization encourages a lot of small value purchases it opens the door for
collusion, cheating canvassing and fraud. Discuss (20 marks)

6. Briefly explain the meaning of the following stock control terms:
a) JIT (4 marks)
b) MRP (4 marks)
c) Buffer stocks (4 marks)
d) Variety Reduction (4 marks)
e) Redundant stocks (4 marks)

7. a) Explain on five measures you will take to protect a store building. (10 marks)

b) Highlight five measures you may take to reduce fraudulent proctices in purchasing
department. (10 marks)

8. Assume that you havae been deployed as a distribution officer in charge of packaging
loading and dispatching of goods to customers:

a) Highlight five measures you will take to guarantee the safe arrival of goods to
the point of delivery without being damaged. (10 marks)

b) Explain the advantages of outsourcing to an organization. (10 marks)

Certificatecourse In Management Question Paper

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