CPSM | CERTIFIED PROFESSIONAL IN SUPPLY MANAGEMENT EXAM #2 QUESTIONS AND DETAILED ANSWERS|LATEST 2023 -24 Which of the following is a statement from a shipper listing contents of multiple shipments? (a) A Manifest (b) An Independent Inspection Certificate (c) A Commercial Invoice (d) A dock receipt - (a) Manifest Leading supply management organizations typically include continuous improvement clauses within their contracts, in order to target cost, quality, and (a)innovation enhancement (b) customer responsiveness (c) cycle times (d) supplie r performance - (d) Supplier Performance Acquiring material on consignment may allow the supply management professional to save on all of the following except (a) interest cost (b) storage cost (c) cost of obsolescence (d) taxes - (b) Storage Cost Which of the following forms of payment for international purchases ia generally MOST favorable to the buying organization? (a) Cash in Advance (b) Draft (c) Letter of Credit (d) Open Account - (d) Open Account Which of the following is the LEAST important conc ern when contracting for the design and manufacture of a special component? (a) The Ownership of the Design (b) The location of the supplier (c) The right to apply for a patent (d) the ownership of special tooling - (b) Location of the supplier In this ty pe of Budget, funds are made available as expenditures are required. Outlays are forecast over periods of time - Cash-flow budget This type of budget changed depending on varying conditions, such as increased or decreased output - Flexible budget This ty pe of budget is formatted to show individual expenses during the budgetary period, without tying those expenses into programs or goals - Line Item Budget This type of budget does not use past experiences to determine future needs - Zero-Based Budget This type of budget is common among non -profits and governmental agencies. It ties the the organizations goals and objectives to the program or sections responsible for meeting those objectives - Program/Project Budget This type of budget is a financial plan specifying the amount of money to be spent on plant or equipment - Capital Budget This type of budget is based on the number of FTEs and their respective salaries - Head Count Budget This type of document used to enter into an interim agreement pending a definitive contract, so as to permit the start of delivery, is called a (a) Letter of intent (b) purchase order (c) customized contract (d) standard contract - (a) Letter of Intent The charge assessed by a railroad against a shipper that holds a rail car beyond the free time allowed is called (a) absorption (b) demurrage (c) drayage (d) dockage - (b) demurrage A supply management professional decides to issue a separate purchase order for each of several items instead of combining the items on a single purchase order. The probable result of this policy will be a decrease in the (a) overall # of purchases made by org (b) avg cost of processing a PO (c) # of purchasing errors (d) amount of staff needed by purchasing - (b)Average cost of processing a PO A SMP orders paint from a supplier and specifies that the paint must dry tack free in 4 hours, and dry hard in 12 hours. These specifications are examples of (a) engineering specifications (b) performance specifications (c) restrictive specifications (d) technical specifications - (b) Performance Specifications A certain byproduct of GHI Corps manufacturing process is expensive to dispose of and does not decompose easily. GHIs SMP is tasked with identifying ways to reduce disposal cost associated with this byproduct. Which of the following is the BEST course of action (a) Re -
engineer process to eliminate production of the byproduct (b) Sell the byproduct to another manufacturer who needs it (c) Organize a team to identify potential uses for the byprodu ct in-house (d) Solicit competitive bids to identify recyclers who are more cost -competitive - (b) Sell the byproduct to another manufacturer who needs it
engineer process to eliminate production of the byproduct (b) Sell the byproduct to another manufacturer who needs it (c) Organize a team to identify potential uses for the byprodu ct in-house (d) Solicit competitive bids to identify recyclers who are more cost -competitive - (b) Sell the byproduct to another manufacturer who needs it
