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APICS Certified Supply Chain Professional Sample Questions (Q422-Q427):
NEW QUESTION # 422
The Global Reporting Initiative (GRI) is intended to:
Answer: B
NEW QUESTION # 423
A warehouse supervisor has discovered a shortage of material to fulfill a customer order. If the inventory report shows that there should be enough material to fill the order, what should be done next?
Answer: B
Explanation:
When a warehouse supervisor discovers a shortage of material despite inventory reports indicating sufficient stock, the next step should be to analyze the root cause of the discrepancy. This involves investigating potential errors in inventory records, theft, damage, misplacement, or inaccuracies in stock counts. Identifying and addressing the root cause ensures accurate inventory management and prevents future discrepancies, thereby improving order fulfillment reliability.
References:
"Inventory Management Best Practices." ISM (Institute for Supply Management).
"Root Cause Analysis in Inventory Management." APICS.
NEW QUESTION # 424
Raw material costs have been rising and much of the inventory has been in-house for several months. Which of the following inventory accounting methods would maximize reported company assets?
Answer: A
Explanation:
In a period of rising raw material costs, the First In, First Out (FIFO) inventory accounting method would maximize reported company assets. FIFO assumes that the oldest inventory items are sold first, which means the cost of goods sold (COGS) is based on the older, lower costs of raw materials. Consequently, the remaining inventory on the balance sheet is valued at the more recent, higher costs, thus reflecting higher asset values. Last In, First Out (LIFO) would do the opposite, and Activity-based cost and Moving average cost do not specifically take advantage of rising prices in this manner.
Horngren, C. T., Datar, S. M., & Rajan, M. V. (2015). "Cost Accounting: A Managerial Emphasis."
NEW QUESTION # 425
Moving from engineer-to-order (ETO) to assembled-to-order (ATO) usually increases which of the following costs per unit?
Answer: D
Explanation:
* Definitions:
* Engineer-to-Order (ETO): Products are designed and built to customer specifications after the order is received.
* Assemble-to-Order (ATO): Products are assembled from pre-existing components after receiving an order.
* Inventory Implications: Moving from ETO to ATO requires maintaining an inventory of components and subassemblies that can be quickly assembled into final products.
* Increased Costs:
* Inventory Costs: Increased because components need to be stocked to facilitate quick assembly.
* Comparison with Other Costs:
* Transportation (A): Costs per unit generally remain unaffected by the move from ETO to ATO.
* Manufacturing (C): Manufacturing costs per unit typically decrease due to standardized components.
* Procurement (D): Procurement costs might be streamlined due to bulk buying of components but do not necessarily increase per unit.
* Conclusion: The shift to ATO usually increases inventory costs per unit due to the need for maintaining a stock of components.
References
* "Manufacturing Planning and Control for Supply Chain Management" by Thomas E. Vollmann, William L. Berry, and David C. Whybark.
* APICS Dictionary, 16th Edition.
NEW QUESTION # 426
A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?
Answer: D
Explanation:
Section: Mixed questions
NEW QUESTION # 427
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