APICS APICS Certifications CPIM-MPR Questions & Answers

• Question 561:

  If the cost of direct material is 60%, direct labor is 10%, and overhead is 25%of sales what will be the improvement in profit if direct material is reduced to 55%?

  A. 5%

  B. 3%

  C. 4%

  D. No improvement

  Correct Answer: A

• Question 562:

  An income statement of a company is as follows:

  

  Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to increase to 1.2 million. What will happen with CGS?

  A. Decrease by 3%

  B. Increase by 4%

  C. Decrease by 4%

  D. Will remain same

  Correct Answer: A

• Question 563:

  An income statement of a company is as follows:

  

  If through a well-organized materials management department direct materials can be reduced by 10% and direct labor by 5% the improvements in profits would be:

  A. 5%

  B. 6% C. 7%

  D. 4%

  Correct Answer: B

• Question 564:

  Important way to resolve conflicting objective is:

  A. To provide close coordination of the supply, production and distribution functions.

  B. Balance conflicting objectives to minimize the total of all costs involved

  C. Integrated materials management or logistics organization

  D. All statements related ones.

  Correct Answer: D

• Question 565:

  The Question mark represents:

  

  A. Inventories

  B. Payables

  C. Cost of goods solved

  D. None of these

  Correct Answer: A

• Question 566:

  Production must keep its operating cost as low as possible this can be done in the following way/ways:

  A. Make long production runs of relatively few production runs of relatively few products. Fewer Changeovers will be needed and specialized equipment can be used thus reducing the cost of making the product

  B. Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages.

  C. Manufacture only to customer order

  D. Provide lowest distribution costs

  Correct Answer: AB

• Question 567:

  All of the following are ways to achieve financial objectives EXCEPT:

  A. Reduce inventory so inventory investment is at a minimum level

  B. Decrease the number of plants and warehouses

  C. Extensive distributions system

  D. Manufacture only to customer order

  Correct Answer: C

• Question 568:

  Which of the following help to achieve marketing objectives?

  A. Maintain high inventories to goods are always available for the customers

  B. Interrupt production runs so that a non-inventoried item can be manufactured quickly

  C. Create an extensive and costly distribution system so good can be shipped to the customer rapidly

  D. All of these

  Correct Answer: D

• Question 569:

  To get most profit, a company must have:

  A. Best customers service

  B. Lowest production and inventory costs

  C. Lowest distribution costs

  D. All of these

  Correct Answer: D

• Question 570:

  What was/were the conflict/s in traditional system before the growth of supply chain concept?

  A. Supply, production and distribution system were organized into separate functions that reported to different departments of a company.

  B. Often departmental objectives were maximized without considering the effect they would have on other parts of the system.

  C. Costly distribution systems were these

  D. Strategy of high inventory pile up was following

  Correct Answer: AB