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APICS CPIM Exam Questions
Certified in Production and Inventory Management (Page 11 )

Updated On: 24-Feb-2026
Page 11 of 119
PDF with 588 Questions

There is difference between measurement and standards, because:

  1. Performance standards set the goal
  2. Performance measures say how close you came
  3. Performance measures set and measure the goals
  4. Standards are for market analysis

Answer(s): A,B



The old saying "What you do not measure, you cannot control", is as valid today as it was when first stated. The necessary step/s in implementing a successful performance measurement program is/are:

  1. Establish company goals and objectives
  2. Define performance
  3. State the measurement to be used, set performance standards, educate the user and make sure the program is consistently applied
  4. All of these

Answer(s): D



Continuous improvement does not focus on a "one-shot" improvement out on such things
as:

  1. Rate on improvement in quality
  2. Cost and cost
  3. Reliability, innovation, effectiveness and productivity
  4. All of these

Answer(s): D



If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales ,what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60%of sales to 50%of sales?

  1. 100%
  2. 70%
  3. 50%
  4. 10%

Answer(s): A



Considering the above question how much would sales have to increase in profits?

  1. 50%
  2. 25%
  3. 20%
  4. 10%

Answer(s): B






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