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APICS CPIM Exam (page: 22)
APICS Certified in Production and Inventory Management
Updated on: 09-Feb-2026

Viewing Page 22 of 119 Pages

CPIM PDF with 588 Questions

QUESTION: 106

Which of the following statements is true about obtaining a high level of accuracy for inventory records?

It would usually lead to a reduction of inventory levels.
It is not necessary to achieve because of safety stocks and safety lead time.
It would result in savings that are likely to be small and difficult to determine.
It is probably impossible to achieve and will be costly to obtain.

Answer(s): A

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QUESTION: 107

When a company is pursuing a program to achieve manufacturing excellence, which of the following objectives should receive the highest priority?

delivery reliability
quality improvement
cost reduction
volume flexibility

Answer(s): B

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QUESTION: 108

Which of the following is most likely to be the order winner in the early stages of a product's life cycle?

Quality
Design
support
price

Answer(s): B

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QUESTION: 109

A manufacturer's decision to extend the degree of forward integration should be influenced by its desire to do which of the following?

I only
III only
I and II only
I, II, and III
Reduce the uncertainty of demand
I Erect barriers to potential competitors
II Reduce the number of processes to be controlled

Answer(s): C

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QUESTION: 110

Analyzing capital investments by estimating future cash flows and translating them into equivalent amounts in today's terms is called:

Average return on investment analysis
payback analysis
internal rate of return analysis
discounted cash flow analysis

Answer(s): D

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