APICS APICS Certifications CPIM-MPR Questions & Answers

• Question 201:

  To order exactly what is needed, no more, no less, this rule is called:

  A. lot-for-lot

  B. Fixed-order quantity

  C. Permanent lot

  D. Rigid-order rule

  Correct Answer: A

• Question 202:

  Control is exercised through individual items in a particular inventory, this is called:

  A. Inventory element

  B. Stock-keeping units

  C. Stock entity

  D. Inventory corps

  Correct Answer: B

• Question 203:

  As applied to inventories, it is usually found that the relationship between the percentage of items and the percentage of annual dollar usage follows a pattern in which three groups can be defined:

  Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the dollar usage

  A. True

  B. False

  Correct Answer: B

• Question 204:

  What uses cost determined before production begins?

  A. Standard cost

  B. Cost of quality

  C. Average cost

  D. Analysis cost

  Correct Answer: A

• Question 205:

  When a small number of items often dominate the results achieved in any situation, this is called:

  A. Standard law

  B. Recessive Act

  C. Pareto's law

  D. Petite Act

  Correct Answer: C

• Question 206:

  Which of the following is NOT the method accounting use to cost inventory?

  A. First in first out

  B. Last in first out

  C. Average cost

  D. Analysis cost

  Correct Answer: D

• Question 207:

  The formula to calculate the Inventory turns is:

  A. Inventory turns = average cost of goods sold / annual inventory in dollars

  B. Inventory turns = annual cost of goods purchased / average financial measures in dollars

  C. Inventory turns = annual cost of goods sold / average inventory in dollars

  D. Inventory turns = annual cost of goods sold * average inventory in dollars

  Correct Answer: C

• Question 208:

  Owner's equity is:

  A. Difference between revenues and expenses

  B. Difference between expenses and liabilities

  C. Difference between assets and revenues

  D. Difference between assets and liabilities

  Correct Answer: D

• Question 209:

  Something that has value and is expected to benefit the future operation of the business is known as:

  A. Revenues

  B. Business Plan

  C. Asset

  D. Sales

  Correct Answer: C

• Question 210:

  Which costs can be avoided by leveling production, that is, by producing items in slack periods for sale in peak periods?

  A. Capacity-associated control

  B. Production cost

  C. Purchase order cost

  D. Stock-out cost

  Correct Answer: A