CSCP APICS Exam Questions and Free Practice Test

Question 109

- (Topic 2)
A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

A. There will be no effect.

B. It will decline and then stabilize at a lower level.

C. It will improve and then stabilize at a higher level.

D. It will decline until sales erode.

Correct Answer:B

Question 110

- (Topic 3)
A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and
$5,000 in total assets. What is the total sales volume for the company?

A. $ 5,400

B. $ 9,000

C. $15,000

D. $25,000

Correct Answer:B

Question 111

- (Topic 3)
Which of the following continuous improvement methodologies focuses on reduction of defects by reducing process variation?

A. Just-in-Time (JIT)

B. Kaizen

C. Six Sigma

D. Theory of constraints

Correct Answer:C

Question 112

- (Topic 3)
Which of the following statements indicates an attribute of international commercial terms (Incoterms)?

A. They are required contract terms for international trade.

B. Each term implies the responsibilities of the buyer and seller.

C. Discounts and surcharges are identified by the terms.

D. The terms are reviewed annually by the International Chamber of Commerce.

Correct Answer:B

Question 113

- (Topic 3)
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

A. Use a more rapid transportation mode.

B. Increase safety stock.

C. Extend product warranty.

D. Employ lean principles.

Correct Answer:D

Question 114

- (Topic 2)
The most important challenge to consider when sourcing globally is:

A. the identification of sources capable of producing the materials.

B. the availability of low-cost labor and energy.

C. complying with specific import/export issues.

D. balancing the difference between piece price and total cost.

Correct Answer:D

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