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APICS CPIM Exam
Certified in Production and Inventory Management (Page 39 )

Updated On: 1-Feb-2026
Page 23 of 119
PDF with 588 Questions

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

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

Answer(s): A



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

  1. delivery reliability
  2. quality improvement
  3. cost reduction
  4. volume flexibility

Answer(s): B



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

  1. Quality
  2. Design
  3. support
  4. price

Answer(s): B



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

  1. I only
  2. III only
  3. I and II only
  4. I, II, and III
  5. Reduce the uncertainty of demand
    I Erect barriers to potential competitors
    II Reduce the number of processes to be controlled

Answer(s): C



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

  1. Average return on investment analysis
  2. payback analysis
  3. internal rate of return analysis
  4. discounted cash flow analysis

Answer(s): D



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