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APICS Certified in Planning and Inventory Management(Part 2) Sample Questions:

1. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

A) Increased accounts receivable
B) Decreased retained earnings
C) Increased intangible assets
D) Decreased fixed assets

2. An advantage of activity-based costing (ABC) is:

A) it uses cost drivers to allocate costs to products.
B) it is easier to establish standard costs.
C) it allows raw material costs to be allocated on a per unit basis.
D) it enables overhead costs to be allocated evenly across all products.

3. Which of the following approaches should first be considered as part of process improvement?

A) Hiring more skilled people to perform the job
B) Applying stricter quality control
C) Making better use of existing resources
D) Buying better and faster equipment

4. In a make-to-stock (MTS) environment, which of the following actions would improve thetrade-off between the cost ofinventory and the level of customer service?

A) Decreasing the frozen time zone
B) Improving estimates of customer demand
C) Reducing manufacturing overtime
D) Eliminating raw material stockouts

5. To successfully empower individuals to drive change, an organization should:

A) ensure everyone can clearly articulate the business's vision and strategy.
B) establish and track broad change metrics on a quarterly basis.
C) align performance appraisals with the business's vision.
D) conduct thorough training programs for all levels of employees.

Solutions: