APICS CPIM Exam
Certified in Production and Inventory Management (Page 12 )

Updated On: 30-Jan-2026

If shippers want to reduce transportation cost, they should:

  1. increase the weight shipped
  2. maximize density
  3. Both A and B
  4. Neither A nor B

Answer(s): C



To provide the required level of customer service at the least total system cost, is the objective of:

  1. Distribution inventory
  2. Distribution management
  3. Process management
  4. Management maintenance

Answer(s): B



Inventory must be sorted and the same parts collected together so they can easily be counted, this is called:

  1. Housekeeping
  2. Recordkeeping
  3. Bookkeeping
  4. Recording

Answer(s): A



Which of the three factors are involved in good preparation of the physical inventory?

  1. Tolerance, identification and training
  2. Housekeeping, Inventory and production
  3. Housekeeping, identification and training
  4. Workforce, Physical control and security

Answer(s): C



To satisfy the financial auditors that the inventory records represent the value of the inventory, this is the purpose of:

  1. Evolutionary inventory
  2. Functional inventory
  3. Physical inventory
  4. Periodic inventory

Answer(s): D



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