1|Page
CPSM DIAGNOSTIC EXAM LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
A supply manager for an apparel company must decide whether
to change suppliers of polyurethane hangers for the finished
products that are shipped to retailers. It will cost approximately
$20,000 to make all of the necessary changes to the company's
operation in order to take on a new supplier. The current supplier
is priced $0.05 per unit higher than the lowest competitor. The
lowest competitor's quality and service are equal to that of the
current supplier.
What quantity of hangers will the supply manager need to buy to
justify making the change on a cost basis?
(A) 40,001
(B) 50,001
(C) 400,001
(D) 500,001 - ANSWER-(C) 400,001
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A company wishes to reduce costs on a product it manufactures.
The company is considering a capital expenditure of $80,000,
which would generate an annual net cash flow of $30,000
beginning in year one. Marketing has determined the product will
be sold for three years after the new equipment is installed. The
company expects an annual discount rate of 8%.
What is the net present value of this opportunity?
(A) -$9,200
(B) -$2,688
(C) $3,600
(D) $10,000 - ANSWER-(B) -$2,688
What is the method of depreciation that assumes that an item's
utility declines over time, resulting in significantly higher
depreciation in the earlier years?
(A) Declining Balance Method
(B) Straight Line Method
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(C) Sum of Years Digits Method
(D) Units of Activity Method - ANSWER-(D) Units of Activity
Method
Which of the following depreciation methods is compatible with
the matching principle where the higher
depreciation expense in earlier years parallels the asset's greater
earning power?
(A) Declining Balance Method
(B) Straight Line Method
(C) Sum of Years Digits Method
(D) Units of Activity Method - ANSWER-(A) Declining Balance
Method
Which of the following depreciation
methods is the simplest to calculate and makes the assumption
that it is a function of time rather than use?
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(A) Declining Balance Method
(C) Sum of Years Digits Method(B) Straight Line Method
(D) Units of Activity Method - ANSWER-(B) Straight Line Method
The interest rate levels arc most directly affected by fluctuations in
which of the following?
(A) International currency exchange rates
(B) The Dow Jones Industrial Average
(C) The rare of business failures
(D) The money supply - ANSWER-(D) The money supply
Commodity purchases fluctuate in a spot market primarily
because the demand is
(A) dependent
(B) independent
(C) price elastic
CPSM DIAGNOSTIC EXAM LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
A supply manager for an apparel company must decide whether
to change suppliers of polyurethane hangers for the finished
products that are shipped to retailers. It will cost approximately
$20,000 to make all of the necessary changes to the company's
operation in order to take on a new supplier. The current supplier
is priced $0.05 per unit higher than the lowest competitor. The
lowest competitor's quality and service are equal to that of the
current supplier.
What quantity of hangers will the supply manager need to buy to
justify making the change on a cost basis?
(A) 40,001
(B) 50,001
(C) 400,001
(D) 500,001 - ANSWER-(C) 400,001
,2|Page
A company wishes to reduce costs on a product it manufactures.
The company is considering a capital expenditure of $80,000,
which would generate an annual net cash flow of $30,000
beginning in year one. Marketing has determined the product will
be sold for three years after the new equipment is installed. The
company expects an annual discount rate of 8%.
What is the net present value of this opportunity?
(A) -$9,200
(B) -$2,688
(C) $3,600
(D) $10,000 - ANSWER-(B) -$2,688
What is the method of depreciation that assumes that an item's
utility declines over time, resulting in significantly higher
depreciation in the earlier years?
(A) Declining Balance Method
(B) Straight Line Method
,3|Page
(C) Sum of Years Digits Method
(D) Units of Activity Method - ANSWER-(D) Units of Activity
Method
Which of the following depreciation methods is compatible with
the matching principle where the higher
depreciation expense in earlier years parallels the asset's greater
earning power?
(A) Declining Balance Method
(B) Straight Line Method
(C) Sum of Years Digits Method
(D) Units of Activity Method - ANSWER-(A) Declining Balance
Method
Which of the following depreciation
methods is the simplest to calculate and makes the assumption
that it is a function of time rather than use?
, 4|Page
(A) Declining Balance Method
(C) Sum of Years Digits Method(B) Straight Line Method
(D) Units of Activity Method - ANSWER-(B) Straight Line Method
The interest rate levels arc most directly affected by fluctuations in
which of the following?
(A) International currency exchange rates
(B) The Dow Jones Industrial Average
(C) The rare of business failures
(D) The money supply - ANSWER-(D) The money supply
Commodity purchases fluctuate in a spot market primarily
because the demand is
(A) dependent
(B) independent
(C) price elastic
