CPSM Supply Management Core 2

Question 1

Which cost analysis technique separates a supplier's price into labor, material, overhead, and profit components?

Accepted Answer

Cost analysis

Answer

Cost analysis breaks down a supplier's price into its constituent cost elements to evaluate reasonableness, while price analysis compares price without examining cost structure.

Question 2

A buyer negotiates a contract where the seller is reimbursed for all allowable costs plus a fixed dollar fee. This is a:

Accepted Answer

Cost-plus-fixed-fee contract

Answer

A cost-plus-fixed-fee (CPFF) contract reimburses actual allowable costs and adds a predetermined fee that does not change with cost outcomes.

Question 3

The Economic Order Quantity (EOQ) model minimizes the sum of which two inventory costs?

Accepted Answer

Ordering costs and carrying costs

Answer

EOQ balances ordering (acquisition) costs, which decrease with larger order sizes, against carrying (holding) costs, which increase with larger order sizes.

Question 4

A supply manager discovers a sole-source supplier has increased prices by 18% citing raw material inflation. The BEST first step is to:

Accepted Answer

Request a cost breakdown and market data to validate the claim

Answer

Requesting a cost breakdown with supporting market indices allows the buyer to validate whether the claimed inflation justifies the price increase before accepting or rejecting it.

Question 5

Which incoterm transfers risk from seller to buyer at the named port of destination after the goods are unloaded?

Accepted Answer

DDP

Answer

DDP (Delivered Duty Paid) places maximum obligation on the seller, who bears all risks and costs including import duties until goods are delivered to the named destination.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supply Management Core 2