APICS CPIM-BSP Exam
CPIM - Basics of Supply Chain Management (Page 5 )

Updated On: 1-Feb-2026

Which of the following factors is included in cost of goods sold?

  1. Revenue
  2. General and administrative expenses
  3. Overhead
  4. Standard cost

Answer(s): C



The theory of constraints is most effective when:

  1. demand environments are unstable.
  2. demand environments are stable.
  3. the constraint cannot be managed easily.
  4. the constraint cannot be identified easily.

Answer(s): B



Inventory turns is an appropriate performance measure for which of the following functions?

  1. Material control
  2. Activity-based costing control
  3. Total quality management
  4. Flexible manufacturing

Answer(s): A



Having bolts and tools at the point of use on the automobile assembly line eliminates the waste of :

  1. waiting.
  2. overproduction.
  3. making defects.
  4. stocks.

Answer(s): A



After a quality improvement program has been successfully implemented, the greatest cost of controlling quality typically is the cost of:

  1. failure.
  2. appraisal.
  3. prevention.
  4. inspection.

Answer(s): C



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