ch12 - ch12 True/False Indicate whether the statement is...

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True/False Indicate whether the statement is true or false. ____ 1. Many private companies use the term procurement instead of purchasing. ____ 2. The cost savings and use of offshore resources lower inflation, increase productivity, and lower interest rates. ____ 3. Most people view offshore outsourcing as being good. ____ 4. Many companies are realizing that they can use offshore outsourcing and create more jobs at home. ____ 5. Few organizations use some form of outsourcing to meet their information technology needs. ____ 6. According to a 2008 report on IT outsourceing trends in the U.S. and Canada, application development is the least popular form of IT outsourcing and was used by only 25 percent of organizations surveyed. ____ 7. When an organization outsources work, it often does not have as much control over those aspects of projects that suppliers carry out. ____ 8. The success of many information technology projects that use outside resources is often due to good project cost management. ____ 9. If there is no need to buy any products or services from outside the organization, then there is no need to per- form any of the other procurement management processes. ____ 10. It is always less effective to hire skilled consultants to perform specific tasks for a short period of time than to hire or keep employees on staff full time. ____ 11. Make-or-buy analysis involves estimating the internal costs of providing a product or service and comparing that estimate to the cost of outsourcing. ____ 12. Experts outside the company, including potential suppliers themselves, cannot provide expert judgment. ____ 13. The buyer absorbs less of the risk with cost-reimbursable contracts than they do with fixed-price contracts. ____ 14. The total value of the contract is a function of the quantities needed to complete the work. ____ 15. Any type of contract should include specific clauses that take into account issues unique to the project. ____ 16. Some termination clauses state that the buyer can terminate a contract for any reason and give the supplier only 24 hours’ notice. ____ 17. Contents of the procurement management plan will vary with project needs. ____ 18. Lead times for purchases and acquisitions should not be included in a procurement management plan. ____ 19. It is important to use appropriate words in a contract SOW such as may instead of must. ____ 20. A contract SOW should not specify the location of the work. ____ 21. The main sections of an RFP never include the statement of work and schedule information. ____ 22. A key factor in evaluating bids, particularly for projects involving information technology, is the past per- formance record of the bidder. ____ 23.
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ch12 - ch12 True/False Indicate whether the statement is...

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