SCM 371 Final 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
What makes an iceberg dangerous?
a. Decisions are made based on what you can see
b. It is challenging to know the iceberg's exact shape and size
c. You can't confront an iceberg without facing the facts and using the
numbers to navigate
d. All of the above - 🧠ANSWER ✔✔All of the above
,Given the following information, is purchasing performing well in buying iron
castings?
a. Fantastic job (i.e. you deserve a promotion)
b. Terrible job (i.e. you deserve to get fired)
c. Good job (i.e. you can keep job and you'll likely earn a bonus)
d. Mediocre job (i.e. you will likely keep job but you won't receive bonus)
e. You give up. You have no clue. - 🧠ANSWER ✔✔Mediocre job (i.e. you
will likely keep job but you won't receive bonus)
What is labor + material + overhead equal to?
a. Return on investment
b. Asset turnover ratio
c. Inventory turnover ratio
d. Price
e. Cost of goods sold - 🧠ANSWER ✔✔Cost of goods sold
,Which of the following is not true about a supplier cost breakdown?
a. Labor and material costs can vary across suppliers
b. Markup (which determines profit) is a percent of price
c. SGA is often calculated as a percent of factory cost
d. Overhead is often calculated as a percent of labor
e. All of the above are true - 🧠ANSWER ✔✔b. Markup (which determines
profit) is a percent of price
Given the following scenario, what is the percent of manufacturing
overhead the supplier is including in the selling price?
A supplier sells a spare part for $75 per unit. The net profit and selling,
general, and administrative expense are a total of 15% of the selling price.
Direct material costs are 20% of the selling price, and the ratio of direct
material costs to direct labor costs is 1.20 (for every dollar of materials, it is
1.20 dollars in labor).
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, a. 20%
b. 15%
c. 120%
d. 41%
e. None of the above - 🧠ANSWER ✔✔41%
Using reverse analysis, what is the estimated cost (sum of labor, material
and overhead) for this supplier to produce these chemicals?
A supplier gives you a price of $400 for a barrel of specialized chemicals.
Included in this price is a per barrel set up charge of (tooling) $40.50. The
industry they are part of operates at 10% profit and 5% SGA; both profit
and SGA are a percentage of the selling price.
a. $299.50
b. $340.00
c. $360.00
d. $400.00
Questions with 100% Correct Answers |
Latest Update
What makes an iceberg dangerous?
a. Decisions are made based on what you can see
b. It is challenging to know the iceberg's exact shape and size
c. You can't confront an iceberg without facing the facts and using the
numbers to navigate
d. All of the above - 🧠ANSWER ✔✔All of the above
,Given the following information, is purchasing performing well in buying iron
castings?
a. Fantastic job (i.e. you deserve a promotion)
b. Terrible job (i.e. you deserve to get fired)
c. Good job (i.e. you can keep job and you'll likely earn a bonus)
d. Mediocre job (i.e. you will likely keep job but you won't receive bonus)
e. You give up. You have no clue. - 🧠ANSWER ✔✔Mediocre job (i.e. you
will likely keep job but you won't receive bonus)
What is labor + material + overhead equal to?
a. Return on investment
b. Asset turnover ratio
c. Inventory turnover ratio
d. Price
e. Cost of goods sold - 🧠ANSWER ✔✔Cost of goods sold
,Which of the following is not true about a supplier cost breakdown?
a. Labor and material costs can vary across suppliers
b. Markup (which determines profit) is a percent of price
c. SGA is often calculated as a percent of factory cost
d. Overhead is often calculated as a percent of labor
e. All of the above are true - 🧠ANSWER ✔✔b. Markup (which determines
profit) is a percent of price
Given the following scenario, what is the percent of manufacturing
overhead the supplier is including in the selling price?
A supplier sells a spare part for $75 per unit. The net profit and selling,
general, and administrative expense are a total of 15% of the selling price.
Direct material costs are 20% of the selling price, and the ratio of direct
material costs to direct labor costs is 1.20 (for every dollar of materials, it is
1.20 dollars in labor).
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, a. 20%
b. 15%
c. 120%
d. 41%
e. None of the above - 🧠ANSWER ✔✔41%
Using reverse analysis, what is the estimated cost (sum of labor, material
and overhead) for this supplier to produce these chemicals?
A supplier gives you a price of $400 for a barrel of specialized chemicals.
Included in this price is a per barrel set up charge of (tooling) $40.50. The
industry they are part of operates at 10% profit and 5% SGA; both profit
and SGA are a percentage of the selling price.
a. $299.50
b. $340.00
c. $360.00
d. $400.00
