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APICS CPIM Exam
Certified in Production and Inventory Management (Page 6 )

Updated On: 30-Jan-2026
Page 6 of 119
PDF with 588 Questions

All expenses incurred by the firm because of the volume of inventory accepted will fall in:

  1. Carrying costs
  2. Changing costs
  3. Distributed costs
  4. All of the above

Answer(s): A



Carrying can be broken down into which of the following three categories?

  1. Capital costs, storage costs, risk costs
  2. Training costs, storage costs, risk costs
  3. Capital costs, ordering costs, risk costs
  4. Item costs, transit costs, storage costs

Answer(s): B



Which cost would be the interest lost by not investing the money at the prevailing interest rate, and it may be much higher depending on investment opportunities for the firm?

  1. Capital cost
  2. Investment cost
  3. Minimum cost
  4. Capacity-associated cost

Answer(s): C



What may vary depending upon the interest rates, the credit rating of the firm, and the opportunities the firm may have for investment?

  1. Capital cost
  2. Inventory cost
  3. Normal cost
  4. Item cost

Answer(s): A



The carrying cost is usually defined as a percentage of the dollar value of inventory per unit of time.

  1. True
  2. False

Answer(s): A



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