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CPSM Diagnostic Exam Newest 2025/ 2026 Complete
All 150 Questions And Correct Answers (Verified
Answers) |Already Graded A+|| LATEST EXAM!!!
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
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
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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
(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
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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?
(A) Declining Balance Method
(B) Straight Line Method
(C) Sum of Years Digits 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?
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(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
(D) price inelastic - ANSWER-(C) price elastic
The consolidation of requirements from multiple buying
organizations into a single large order to obtain
quantity discounts is called
(A) hybrid buying
(B) center-led buying
(C) commodity buying
(D) cooperative buying - ANSWER-(D) cooperative buying
CPSM Diagnostic Exam Newest 2025/ 2026 Complete
All 150 Questions And Correct Answers (Verified
Answers) |Already Graded A+|| LATEST EXAM!!!
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
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
,2|Page
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
(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
,3|Page
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?
(A) Declining Balance Method
(B) Straight Line Method
(C) Sum of Years Digits 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?
, 4|Page
(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
(D) price inelastic - ANSWER-(C) price elastic
The consolidation of requirements from multiple buying
organizations into a single large order to obtain
quantity discounts is called
(A) hybrid buying
(B) center-led buying
(C) commodity buying
(D) cooperative buying - ANSWER-(D) cooperative buying
