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APICS CPIM Exam Questions
Certified in Production and Inventory Management (Page 7 )

Updated On: 21-Feb-2026
Page 7 of 119
PDF with 588 Questions

An income statement of a company is as follows:
If through a well-organized materials management department direct materials can be reduced by 10% and direct labor by 5% the improvements in profits would be:

  1. 5%
  2. 6%
  3. 7%
  4. 4%

Answer(s): B



An income statement of a company is as follows:

Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to increase to 1.2 million. What will happen with CGS?

  1. Decrease by 3%
  2. Increase by 4%
  3. Decrease by 4%
  4. Will remain same

Answer(s): A



If the cost of direct material is 60%, direct labor is 10%, and overhead is 25%of sales what will be the improvement in profit if direct material is reduced to 55%?

  1. 5%
  2. 3%
  3. 4%
  4. No improvement

Answer(s): A



If the cost of direct material is 60%, direct labor is 10%,and overhead is 25%of sales. How much to give the same increase in profit? (Remember overhead cost is constant)

  1. 19%
  2. 18%
  3. 17%
  4. 13%

Answer(s): C



On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year.
What is the dollar value of the WIP?

  1. $4, 32,000
  2. $423,000
  3. $4, 33,000
  4. $4, 22,000

Answer(s): A






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