Detailed APICS CSCP Exam Test with Questions
and Correct Answers.
Supplier relationship management - Correct answer-A comprehensive approach to
managing an enterprise's interactions with the organizations that supply the goods and
services the enterprise uses. The goal of SRM is to streamline and make more effective
the processes between an enterprise and its suppliers. SRM is often associated with
automating procure-to-pay business processes, evaluating supplier performance, and
exchanging information with suppliers. An e-procurement system is often an example of
an SRM family of applications.
value chain - Correct answer-the functions within a company that add value to the
goods/services that the org. sells to customers and for which it receives payment
spend management - Correct answer-managing the outflow of funds in order to buy goods
and services
service industry - Correct answer-1. an org that provides an intangible product
2. all orgs except farming, mining, and manufacturing
return on investment - Correct answer-a relative measure of financial performance that
provides a means for comparing various investments by calculating the profits returned
during a specified time period. in the theory of constraints, this is calculated as (throughput
- operating expenses)/investment
strategic planning - Correct answer-the process of developing a strategic plan
value stream - Correct answer-The process of creating, producing, and delivering a good
or service to the market
obsolecense - Correct answer-1. the condition of being out of date
2. the decrease in the value of an asset brought about by the development of new and
more economical processes, methods, or machinery
3. the loss of usefulness or worth of a product or facility as the result of the appearance of
better or more economical products or facilities
,return on assets - Correct answer-net income for the previous 12 months/total assets
inventory valuation - Correct answer-the value of the inventory at either its cost or its
market value. cost value of inventory is computed on a FIFO, LIFO, or standard cost basis
to establish cost of goods sold
value stream mapping - Correct answer-a lean production tool to visually understand the
flow of materials from supplier to customer that includes the current process and flow as
well as the value- and non value-added steps
keiretsu - Correct answer-a form of cooperative relationship among companies in Japan
where the companies remain largely independent, even though they work closely in many
ways such as financial backing
push system - Correct answer-1. in production, the production of items at times required
by a given schedule planned ahead
2. in material control, the issuing of material according to a given schedule
3. in distribution, a system for replenishing field warehouses where replenishment
decision making is centralized, usually at the manufacturing site
partnership - Correct answer-1. a form of business ownership that is not organized as a
separate legal entity, but entailing ownership by 2+ persons
2. in supply chain, a relationship based on trust, shared risk, and rewards aimed at
achieving a competitive adantage
value added - Correct answer-1. in accounting, the addition of direct labor, direct material,
and allocated overhead assigned at an operation
2. in manufacturing, the actual increase in utility from the viewpoint of the customer as a
part is transformed from raw material to finished inventory
global strategy - Correct answer-a strategy that focuses on improving worldwide
performance through sales and marketing of common goods and services with minimum
product variation by country
cost of goods sold - Correct answer-an accounting classification useful for determining the
amount of direct materials, direct labor, and allocated overhead associated with the
products sold during a given period of time
, pull system - Correct answer-1. in production, the production of items only as demanded
for use or to replace those taken for use
2. in material control, the withdrawal of inventory as demanded by the using operations
3. in distribution, a system where replenishment decisions are made at the field
warehouse
supply chain management - Correct answer-the design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand, and measuring performance globally
product differentiation - Correct answer-a strategy of making a product distinct from the
competition on a nonprice basis such as availability, durability, reliability, or quality
innovative products - Correct answer-products that tend to have a high profit margin, be
unique, have less competition, and have dynamic demand
market share - Correct answer-the actual portion of current market demand that a
company or product achieves
multicountry strategy - Correct answer-a strategy in which each country market is self-
contained. Customers have uni8que product expectations that are addressed by local
product capabilities
inventory optimization software - Correct answer-a computer application that can find
optimal inventory strategies and policies related to customer service and return on
investment over several echelons of a supply chain
radio frequency identification (RFID) - Correct answer-a system using electronic tags to
store data about items. accessing data is accomplished through a specific radio frequency
and does not require close proximity or line-of-site access
enterprise resource planning (ERP) - Correct answer-framework for organizing, defining,
and standardizing the business processes necessary to effectively plan and control an
organization so that the organization can use its internal knowledge to seek external
advantage
and Correct Answers.
Supplier relationship management - Correct answer-A comprehensive approach to
managing an enterprise's interactions with the organizations that supply the goods and
services the enterprise uses. The goal of SRM is to streamline and make more effective
the processes between an enterprise and its suppliers. SRM is often associated with
automating procure-to-pay business processes, evaluating supplier performance, and
exchanging information with suppliers. An e-procurement system is often an example of
an SRM family of applications.
value chain - Correct answer-the functions within a company that add value to the
goods/services that the org. sells to customers and for which it receives payment
spend management - Correct answer-managing the outflow of funds in order to buy goods
and services
service industry - Correct answer-1. an org that provides an intangible product
2. all orgs except farming, mining, and manufacturing
return on investment - Correct answer-a relative measure of financial performance that
provides a means for comparing various investments by calculating the profits returned
during a specified time period. in the theory of constraints, this is calculated as (throughput
- operating expenses)/investment
strategic planning - Correct answer-the process of developing a strategic plan
value stream - Correct answer-The process of creating, producing, and delivering a good
or service to the market
obsolecense - Correct answer-1. the condition of being out of date
2. the decrease in the value of an asset brought about by the development of new and
more economical processes, methods, or machinery
3. the loss of usefulness or worth of a product or facility as the result of the appearance of
better or more economical products or facilities
,return on assets - Correct answer-net income for the previous 12 months/total assets
inventory valuation - Correct answer-the value of the inventory at either its cost or its
market value. cost value of inventory is computed on a FIFO, LIFO, or standard cost basis
to establish cost of goods sold
value stream mapping - Correct answer-a lean production tool to visually understand the
flow of materials from supplier to customer that includes the current process and flow as
well as the value- and non value-added steps
keiretsu - Correct answer-a form of cooperative relationship among companies in Japan
where the companies remain largely independent, even though they work closely in many
ways such as financial backing
push system - Correct answer-1. in production, the production of items at times required
by a given schedule planned ahead
2. in material control, the issuing of material according to a given schedule
3. in distribution, a system for replenishing field warehouses where replenishment
decision making is centralized, usually at the manufacturing site
partnership - Correct answer-1. a form of business ownership that is not organized as a
separate legal entity, but entailing ownership by 2+ persons
2. in supply chain, a relationship based on trust, shared risk, and rewards aimed at
achieving a competitive adantage
value added - Correct answer-1. in accounting, the addition of direct labor, direct material,
and allocated overhead assigned at an operation
2. in manufacturing, the actual increase in utility from the viewpoint of the customer as a
part is transformed from raw material to finished inventory
global strategy - Correct answer-a strategy that focuses on improving worldwide
performance through sales and marketing of common goods and services with minimum
product variation by country
cost of goods sold - Correct answer-an accounting classification useful for determining the
amount of direct materials, direct labor, and allocated overhead associated with the
products sold during a given period of time
, pull system - Correct answer-1. in production, the production of items only as demanded
for use or to replace those taken for use
2. in material control, the withdrawal of inventory as demanded by the using operations
3. in distribution, a system where replenishment decisions are made at the field
warehouse
supply chain management - Correct answer-the design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand, and measuring performance globally
product differentiation - Correct answer-a strategy of making a product distinct from the
competition on a nonprice basis such as availability, durability, reliability, or quality
innovative products - Correct answer-products that tend to have a high profit margin, be
unique, have less competition, and have dynamic demand
market share - Correct answer-the actual portion of current market demand that a
company or product achieves
multicountry strategy - Correct answer-a strategy in which each country market is self-
contained. Customers have uni8que product expectations that are addressed by local
product capabilities
inventory optimization software - Correct answer-a computer application that can find
optimal inventory strategies and policies related to customer service and return on
investment over several echelons of a supply chain
radio frequency identification (RFID) - Correct answer-a system using electronic tags to
store data about items. accessing data is accomplished through a specific radio frequency
and does not require close proximity or line-of-site access
enterprise resource planning (ERP) - Correct answer-framework for organizing, defining,
and standardizing the business processes necessary to effectively plan and control an
organization so that the organization can use its internal knowledge to seek external
advantage
