1
For Expert help and assignment solutions, +254707240657
CPSM Exam 1 Questions and Answers
(100% Correct Answers) Already Graded
A+
Q: Methods of communicating attributes of a product or service
Ans: A) Performance & design specs - define what the product or
service must do. Often used with capital equip & services. Performance
spes. gives supplier the most control over how to satisfy the
© 2025 Assignment Expert
requirement. Design Specs gives buyer most control.
B) Internal vs. external specs - if not the same product will cost more.
C) Supplier samples - a physical sample can serve as the spec when it
meets the buyers needs.
Guru01 - Stuvia
Q: Statement of Work (SOW)
Ans: Is a spec for service to be performed. Two components. 1. defines
what product must look like or do and 2. quantitative to measure
performance.
Q: Types of solicitation bids
Ans: 1. Offer to buy vs Offer to sell, 2. Informal bid/quotation, 3.
Electronic solicitations (RFx), 4. Competitive proposals, 5. Sealed bids /
formal advertising, 6. Restricted competition, 7. Non-competitive
negotiations, 8. Two step bidding, 9. alternative/innovative proposals,
10. Pricing models / market baskets, 11. Lotting strategies (online
bidding)
Q: Request for Information (RFI)
Ans: Are information request not binding on either party. Results are
usually in the form of price list or catalogs and helps supplier in
budgeting process. Potential draw backs, is that RFI's are overused and
supplier may not respond.
Q: Bidder's Conferences
, 2
For Expert help and assignment solutions, +254707240657
Ans: Used for more complex biding situations and detailed information
where dialog w/ buyer and supplier are required with engineering and
supplier. Potential problems is the time it takes to conduct.
Q: Weighted average cost of capital formula
Ans: X = Type of capital; Y = Total Capital; Z =the interest rate (cost) or
each type of capital; S=sum. Example:
Long term debt = 400K (capital type)
Preferred stock = 300K (capital type)
Total = 700K
Financing cost:
LTD: 6.2%
PS: 10.5%
Equation:
© 2025 Assignment Expert
1. Debt Type/Total debt = debt type's % of debt.
2. Debt types % of debt * financing cost of debt type
3. If multiple debt types add up the sum of each from steps 1 & 2.
Guru01 - Stuvia
Q: Sum of Years Digits Depreciation
Ans: Takes the number of years of useful life of an asset, counts back to
one, and adds the digits together. This method depreciates more in the
first few years of an asset than the others.
Q: Declining balance Depreciation
Ans: Multiplying the book value by the constant depreciation rate at
the end of each fiscal period. Assumes matching has a higher value at
beginning of life than ant end and matches Depreciation with that
assumption.
Q: Straight line depreciation
Ans: The simplest to calculate and assumes that a machines
depreciation is related to function of time not it's use.
Q: Centralized Buying
Ans: Is an organizational policy and structure in which the authority
and responsibility for most supply related functions and decisions are
assigned to a central organization. Decisions are made in one spot, not
all people are necessarily located in one spot.
For Expert help and assignment solutions, +254707240657
CPSM Exam 1 Questions and Answers
(100% Correct Answers) Already Graded
A+
Q: Methods of communicating attributes of a product or service
Ans: A) Performance & design specs - define what the product or
service must do. Often used with capital equip & services. Performance
spes. gives supplier the most control over how to satisfy the
© 2025 Assignment Expert
requirement. Design Specs gives buyer most control.
B) Internal vs. external specs - if not the same product will cost more.
C) Supplier samples - a physical sample can serve as the spec when it
meets the buyers needs.
Guru01 - Stuvia
Q: Statement of Work (SOW)
Ans: Is a spec for service to be performed. Two components. 1. defines
what product must look like or do and 2. quantitative to measure
performance.
Q: Types of solicitation bids
Ans: 1. Offer to buy vs Offer to sell, 2. Informal bid/quotation, 3.
Electronic solicitations (RFx), 4. Competitive proposals, 5. Sealed bids /
formal advertising, 6. Restricted competition, 7. Non-competitive
negotiations, 8. Two step bidding, 9. alternative/innovative proposals,
10. Pricing models / market baskets, 11. Lotting strategies (online
bidding)
Q: Request for Information (RFI)
Ans: Are information request not binding on either party. Results are
usually in the form of price list or catalogs and helps supplier in
budgeting process. Potential draw backs, is that RFI's are overused and
supplier may not respond.
Q: Bidder's Conferences
, 2
For Expert help and assignment solutions, +254707240657
Ans: Used for more complex biding situations and detailed information
where dialog w/ buyer and supplier are required with engineering and
supplier. Potential problems is the time it takes to conduct.
Q: Weighted average cost of capital formula
Ans: X = Type of capital; Y = Total Capital; Z =the interest rate (cost) or
each type of capital; S=sum. Example:
Long term debt = 400K (capital type)
Preferred stock = 300K (capital type)
Total = 700K
Financing cost:
LTD: 6.2%
PS: 10.5%
Equation:
© 2025 Assignment Expert
1. Debt Type/Total debt = debt type's % of debt.
2. Debt types % of debt * financing cost of debt type
3. If multiple debt types add up the sum of each from steps 1 & 2.
Guru01 - Stuvia
Q: Sum of Years Digits Depreciation
Ans: Takes the number of years of useful life of an asset, counts back to
one, and adds the digits together. This method depreciates more in the
first few years of an asset than the others.
Q: Declining balance Depreciation
Ans: Multiplying the book value by the constant depreciation rate at
the end of each fiscal period. Assumes matching has a higher value at
beginning of life than ant end and matches Depreciation with that
assumption.
Q: Straight line depreciation
Ans: The simplest to calculate and assumes that a machines
depreciation is related to function of time not it's use.
Q: Centralized Buying
Ans: Is an organizational policy and structure in which the authority
and responsibility for most supply related functions and decisions are
assigned to a central organization. Decisions are made in one spot, not
all people are necessarily located in one spot.
