C.P.M. Module 3: Value Enhancement Strategies
Questions, Answers, Braindumps (630-007)
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a lot in my previous exams. Here is my contribution.
When would a purchasing manager generally use a third-party
lease as a financing instrument?
A. When purchasing equipment from the manufacturer
with someone else's money.
B. When acquiring equipment from one party and maintenance
C. When arranging an assignment agreement with a bank.
D. When transferring the asset to the internal customer.
Which of the following statements is FALSE?
A. An operational lease has a non-cancelable term
varying from hours to years.
B. An operational lease is a total financial commitment
by the lessor.
C. In operational leases, payments are fixed payments
D. Operational leases stress service.
Which of the following is the FIRST step in standardization?
A. Collecting data.
B. Simplifying standards.
C. Establishing objectives.
D. Publicizing the program.
Which of the following are the two basic categories
of costs associated with inventories from a management
point of view?
A. Supplies and services costs.
B. Storage and incremental costs.
C. Carrying costs and acquisition costs.
D. Obsolescence and deterioration costs.
Which of the following is the MOST commonly sought-after
piece of inventory information?
A. The date the inventory is taken.
B. The current price of the items.
C. Inventory I.D. numbers.
Which of the following should a purchaser utilize
when there is a need to minimize financial risk in
a sensitive market?
A. Cash flow management.
B. Long-term relationships.
C. Market demand analysis.
D. Hedging using futures contracts.
Which of the following represents the MOST common
reason for a public or nonprofit corporation to use
lease/purchase agreements to obtain equipment?
A. To gain tax advantages.
B. To avoid capital expenditures.
C. To reduce maintenance needs.
D. To gain depreciation advantages.
Which of the following represents the BEST strategy
for minimizing price risk in a falling market?
B. Forward buying.
C. Hand-to-mouth buying.
D. Buying to requirements.
Which of the following should generally make a "make-or-buy"
A. Engineering Management.
B. Purchasing Management.
C. Production Management.
D. General Management.