CPSM - Diagnostic Practice Questions Fully Solved Latest Update 2025 Already Passed
Defining processes for comparing goals to actual results - Answers After the evaluation of cost data and
the determination of the budget figures, defining processes for comparing goals to actual results is the
NEXT step in the budgeting process
Exchange rate - Answers the price at which one currency can be bought with another currency
Implementing a contribution to margin analysis - Answers A supply manager has been asked to
participate in a cost management program to help her organization generate working capital. Which of
the following is the BEST way for the supply manager to contribute to that goal?
Issue long-term contracts - Answers Several items are identified as "critical" items in a supply
segmentation analysis. In order to add value, the supply management professional should look to
A quality control system integrated with that of the purchaser - Answers Typically distinguish a certified
supplier from preferred, approved, or qualified suppliers
Selecting a single source of supply - Answers When selecting a particular source of supply, which of the
following actions is LEAST likely to result in a significant impact in cost?
Recess - Answers Both parties leave the room during a negotiation with the understanding that they will
reconvene at a later time
Speculative buying - Answers Purchases are made with the intent to resell excess quantities at a later
date.
Disqualified supplier - Answers As part of its request for proposal (RFQ), an organization requires
suppliers to include copies of their safety policies and procedures manuals. Supplier XYZ does not have a
safety policy, and consequently does not include a manual with its RFP response. Based on this
information, the buying organization is likely to categorize XY as a
Defining necessary requirements - Answers All of the following are typical steps used in the decision
analysis process for supplier proposal evaluation EXCEPT
Conducting ongoing training and posting material safety data sheets (MSDS) as needed - Answers An
organization has detailed policies and procedures for dealing with safe handling for a variety of
materials, including potentially hazardous materials. In order to maintain employee awareness, which of
the following is MOST important?
Price elastic - Answers Commodity purchases fluctuate in a spot market primarily because the demand is
Fair and Open - Answers In supply base analysis, what degree of completion exists when there are only a
few local suppliers, and they are similar in behavior and pricing?
Multi-tier purchasing agreement - Answers A supply manager has several suppliers that use copper in
the products they manufacture. However, non of the suppliers is a major buyer of copper. The supply
Defining processes for comparing goals to actual results - Answers After the evaluation of cost data and
the determination of the budget figures, defining processes for comparing goals to actual results is the
NEXT step in the budgeting process
Exchange rate - Answers the price at which one currency can be bought with another currency
Implementing a contribution to margin analysis - Answers A supply manager has been asked to
participate in a cost management program to help her organization generate working capital. Which of
the following is the BEST way for the supply manager to contribute to that goal?
Issue long-term contracts - Answers Several items are identified as "critical" items in a supply
segmentation analysis. In order to add value, the supply management professional should look to
A quality control system integrated with that of the purchaser - Answers Typically distinguish a certified
supplier from preferred, approved, or qualified suppliers
Selecting a single source of supply - Answers When selecting a particular source of supply, which of the
following actions is LEAST likely to result in a significant impact in cost?
Recess - Answers Both parties leave the room during a negotiation with the understanding that they will
reconvene at a later time
Speculative buying - Answers Purchases are made with the intent to resell excess quantities at a later
date.
Disqualified supplier - Answers As part of its request for proposal (RFQ), an organization requires
suppliers to include copies of their safety policies and procedures manuals. Supplier XYZ does not have a
safety policy, and consequently does not include a manual with its RFP response. Based on this
information, the buying organization is likely to categorize XY as a
Defining necessary requirements - Answers All of the following are typical steps used in the decision
analysis process for supplier proposal evaluation EXCEPT
Conducting ongoing training and posting material safety data sheets (MSDS) as needed - Answers An
organization has detailed policies and procedures for dealing with safe handling for a variety of
materials, including potentially hazardous materials. In order to maintain employee awareness, which of
the following is MOST important?
Price elastic - Answers Commodity purchases fluctuate in a spot market primarily because the demand is
Fair and Open - Answers In supply base analysis, what degree of completion exists when there are only a
few local suppliers, and they are similar in behavior and pricing?
Multi-tier purchasing agreement - Answers A supply manager has several suppliers that use copper in
the products they manufacture. However, non of the suppliers is a major buyer of copper. The supply
