APICS APICS Certifications CPIM-MPR Questions & Answers

• Question 211:

  The annual cost and effort expended in orders placed, not on the quantity ordered.

  A. Capacity control

  B. Production control

  C. Purchase order cost

  D. Set-up control

  Correct Answer: B

• Question 212:

  The carrying cost is usually defined as a percentage of the dollar value of inventory per unit of time.

  A. True

  B. False

  Correct Answer: A

• Question 213:

  Which cost would be the interest lost by not investing the money at the prevailing interest rate, and it may be much higher depending on investment opportunities for the firm?

  A. Capital cost

  B. Investment cost

  C. Minimum cost

  D. Capacity-associated cost

  Correct Answer: C

• Question 214:

  What may vary depending upon the interest rates, the credit rating of the firm, and the opportunities the firm may have for investment?

  A. Capital cost

  B. Inventory cost

  C. Normal cost

  D. Item cost

  Correct Answer: A

• Question 215:

  Carrying can be broken down into which of the following three categories?

  A. Capital costs, storage costs, risk costs

  B. Training costs, storage costs, risk costs

  C. Capital costs, ordering costs, risk costs

  D. Item costs, transit costs, storage costs

  Correct Answer: B

• Question 216:

  Items purchased or manufactured in quantities greater than needed immediately create .

  A. bulk-size inventories

  B. massive-size inventories

  C. lion's share inventories

  D. lot-size inventories

  Correct Answer: D

• Question 217:

  What exist because of the time needed to move goods from one location to another such as from a plant to a distribution center or a customer?

  A. Stable inventories

  B. Operating inventories

  C. Pipeline inventories

  D. Cyclic inventories

  Correct Answer: C

• Question 218:

  Inventory investment can be balanced with:

  A. Customer service

  B. Costs associated with changing production levels

  C. Cost of placing orders

  D. All of the above

  Correct Answer: D

• Question 219:

  All expenses incurred by the firm because of the volume of inventory accepted will fall in:

  A. Carrying costs

  B. Changing costs

  C. Distributed costs

  D. All of the above

  Correct Answer: A

• Question 220:

  If demand or lead time is greater than forecast, then what will occur?

  A. Invaluable stock

  B. Unpredictable stock

  C. Stockout

  D. Vulnerable stock

  Correct Answer: C