CPIM APICS Exam 1 Questions With Correct Answers

Inventory is the ____ of Supply Chain - Answer life blood Inventory Turns equation - Answer Annual COGS/ Avrg inventory $ Matrix structure - Answer you can have more than one boss, one product group, Team members come from different teams are also members of the product management office Centralized corp structure - Answer decisions are made at the top Appropriate response to risk (4 Parts) - Answer 1. Try to avoid risk 2. Risk acceptance 3. Risk transfer 4. Risk mitigation Implement and monitor plan Job enlargement - Answer giving people more work to do Job enrichment - Answer giving workers more authority Job Rotation - Answer changing positions to provide broader perspective (ex LDP Program) Business planning - Answer Done by product families and translated into synchronized functional plans Current assets - Answer assets that can be spent/ used in less than one year Inventory ratio (aka activity ratio) - Answer COGS/ Avrg Inventory Fixed assets examples - Answer gross property, plant and equipment Payback period - Answer cost of investment/ annual cash savings Manufacturing costs (aka direct costs) - Answer DM, DL, MOH Product cost is recognized when - Answer products are sold Period costs - Answer accrued at time of purchase, not included in COGS Variable costing is what kind of tool - Answer lean.. shows fixed OH on your income statement Job-Order costing - Answer this is made to order environment Process costing - Answer costs are collected for the period and averaged Strategy - Answer A plan to use the organizations resources to achieve a sustainable competitive advantage vision - Answer shared perception of the future, what the organization wants to become Mission - Answer overall goals within business scope Values - Answer organizational guideposts for all business and ethical decisions Generic Business strategies (5) - Answer 1. low-cost provider 2. Differentiation 3. Focused low-cost provider 4. Focused differentiation 5. Best-cost provider