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

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

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

2. Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A) Implementing a pull system in production
B) Functional layouts are being utilized
C) Material prices are forecasted to increase
D) Volumes are forecasted to increase

3. A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?

A) Scarcity
B) Difficult to relocate
C) Difficult to substitute
D) Difficult to copy

4. What is the shortest manufacturing lead time required for 10 units of Item A assuming that it must complete Operations10,20, and 30 in a work cell, and these operations require no set up time"?

A) 12 hours
B) 10 hours
C) 30 hours
D) 13 hours

5. Establishment of goals and baselines prior to entering the plan-do-check-act (FDCA) cycle allows improvement teams to:

A) determine if improvement potential is complete.
B) complete the project with fewer iterations.
C) assure successful completion of the improvement effort.
D) determine whether an effective change was made in the process.

Solutions: