Reference no: EM132289419

1. T/F The recent outsourcing increases in the logistical sector can be attributed to increased government and non-government regulation in the transportation industry.

2. T/F - While outsourcing is common in both the private and public business sectors, this outsourcing is focused primarily only on tangible products.

3. T/F - In the last several years, there has been a tendency for managements to make items rather than buying them.

4. T/F According to the text, a basic description of a requirement for an item or service that leaves room for supplier enhancements and contributions is called a specification.

4. T/F A particularly difficult commodity to procure is packaging material primarily due to potential liability and cost in its disposal, environmental and transportation factors.

5. T/F - Acme. Inc has decided to proceed with the standardization of all key commodities. This product design decision will most likely lead to a reduction in the number of sizes and designs.

6. T/F - Acme Inc. has decided to reverse its previous make or buy decisions. Because of this, possible insourcing and outsourcing decisions may occur.

7. T/F - Unlike expensed items, capital items cannot be depreciated and thus are purchased under a separate budgetary allocation, and in some cases require special financing arrangements.

8. T/F - Procurements increased participation of services may be explained by the high dollars spent on services and the opportunities to reduce costs.

9. T/F - Capital equipment procurement is different from other types of buys because calculation of final cost includes estimates over the lifespan of the capital items.