AMA AMA Certifications PCM Questions & Answers

• Question 231:

  Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

  A. 442 buckets

  B. 764 buckets

  C. 1,050 buckets

  D. 3,150 buckets

  E. 4,200 buckets

  Correct Answer: C

• Question 232:

  DRM Bikes received an order for a customized bike. Bret, the employee in charge of ordering parts for the custom bikes, ordered two fewer clamping bolts and realized the mistake only after his co-worker Julio complained of a shortage in clamping bolts. Julio suggested that it was best to inform the customer about the situation and place a new order for a set of bolts. Martino, Bret's co-worker, suggested using an old pair of bolts because the average customer wouldn't recognize the difference. However, Bret knows that the customer is an experienced biker who will notice the difference, and hence suggested that they use the old pair on a bike for a customer who would not. Considering the evidence presented, what is the ethical step for the sales manager to take?

  A. Act on Bret's advice.

  B. Act on Julio's advice.

  C. Act on Martino's advice.

  D. Use an old set of bolts now and replace them when the customer comes back for the first bike service.

  E. Tell the customer that they faced a mechanical problem and hence delivery would be delayed.

  Correct Answer: B

• Question 233:

  Marielle Farm sells bakery and dairy products in the U.S. It sells three varieties of cheese, six types of breads, four types of jams, five types of cookies, and eight different varieties of croissants. What is the breadth of Marielle's product mix in this scenario?

  A. 3

  B. 4

  C. 5

  D. 6

  E. 8

  Correct Answer: C

• Question 234:

  CL Inc. an American fast-food chain enters into an agreement with Mars Corp., a British firm. According to the terms of the contract, Mars Corp. can use CL's brand name, image, logo and business format for a specified fee. This type of market entry is known as _____.

  A. strategic alliance

  B. franchising

  C. joint venture

  D. direct investment

  E. exporting

  Correct Answer: B

• Question 235:

  Goldwyn, a market researcher at Horpine Analytics, is creating a survey to measure the value of his company's brand as perceived by customers. Which of the following questions will help Goldwyn measure the top-of-mind awareness of Horpine Analytics?

  A. Have you used the services of Horpine Analytics?

  B. What are companies that you depend on for your business needs?

  C. What companies do you think of first when you hear the phrase market analysis?

  D. When was the last time you used an analytics tool?

  E. What is the likelihood of recommending Horpine Analytics to others?

  Correct Answer: C

• Question 236:

  Which of the following is a feature of a warehouse club?

  A. A large assortment of food and other products

  B. High prices and luxury merchandise

  C. Little to no in-store service and sales expertise

  D. Deep but narrow assortments and sales associate expertise

  E. An inconsistent assortment of brand name merchandise sold at a significant discount

  Correct Answer: C

• Question 237:

  LockIt, a manufacturer of electronic safes, accounts for 5% of the safes sold in the U.S. LockIt's current business strategy is aimed at selling better-quality products at higher prices than competitors. The higher prices make LockIt one of the leaders in terms of revenue earned. Having satisfied initial objectives of earning a certain ROI, LockIt sets a target of accounting for 25% of the units sold during the next financial year. To further this goal, LockIt introduces a line of lower-priced safes that are priced below similar competing products. LockIt's new pricing strategy is _____.

  A. sales oriented

  B. profit oriented

  C. customer oriented

  D. supplier oriented

  E. competitor oriented

  Correct Answer: A

• Question 238:

  Raymond is driving across town when he spots a billboard that reads, "When life begins..." He instantly recognizes this as the tagline for Voch Spa and expects to find a spa nearby. Which of the following aspects of a brand is exemplified in this scenario?

  A. Brand licensing

  B. Brand dilution

  C. Brand association

  D. Brand loyalty

  E. Brand extension

  Correct Answer: C

• Question 239:

  _____ are consumers who like to avoid change and rely on traditional products until they are no longer available.

  A. Early adopters

  B. Innovators

  C. Early majority

  D. Late majority

  E. Laggards

  Correct Answer: E

• Question 240:

  Which of the following is a source of internal information ?

  A. Books and magazines

  B. A person's knowledge

  C. Friends and family

  D. Financial reports

  E. Consumer reports

  Correct Answer: B