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What is the primary purpose of a vendor management policy?
To provide guidelines for vendor interactions
What is the primary focus of vendor compliance management?
Ensuring adherence to contractual terms
Which of the following is a potential consequence of not monitoring vendor performance?
Financial loss
Which department typically communicates with vendors regarding payment terms?
Accounting
How can vendor management contribute to cost savings?
By reducing inefficiencies
Which of the following is NOT a benefit of effective vendor management?
Reduced employee training
How can vendor management contribute to strategic objectives?
By enhancing collaboration with key suppliers
What is the primary goal of vendor risk assessment?
To minimize financial loss
What is the primary objective of vendor negotiations?
Achieving mutually beneficial terms
What role does technology play in vendor management?
Automating processes
Which of the following is a potential consequence of poor vendor management?
Supply chain disruptions
What is the key benefit of establishing strong vendor relationships?
Enhanced collaboration
What is the primary purpose of a vendor audit?
To assess vendor compliance
Which factor is NOT typically considered when evaluating vendor proposals?
Length of contract
In vendor management, what does the term “SLA” stand for?
Service Level Agreement
Which stage of the vendor management lifecycle involves identifying potential suppliers?
Selection
What is the primary benefit of vendor consolidation?
Lower costs
Which of the following is an example of a vendor management tool?
Spreadsheet software
What is the purpose of establishing vendor performance metrics?
To monitor vendor compliance
Which department typically oversees vendor management activities?
Accounting
Which of the following is NOT a potential risk associated with poor vendor management?
Increased efficiency
What is the purpose of conducting vendor performance evaluations?
To identify areas for improvement
Which financial statement is most affected by vendor management practices?
Income statement
Which of the following is NOT a key component of effective vendor management?
Employee training
What is the primary objective of vendor management in accounting?
Building strong supplier relationships