Which of the following agencies can produce a technical standard?
Answer(s): C
Technical standards are often produced by a national or international body such as British Standard Institute (BSI)LO 3, AC 3.1
Product development consists of various stages, including planning and analysis, design develop- ment, pre-production, production and maintenance. At which stages the opportunities for cost re- duction will be the greatest?1. Planning stage2. Pre-design stage3. Detail design stage4. Production stage5. Logistics support stage
Writing a specification and then procuring and using the product or service has a number of stages. The further on in the process you are, the less potential there is for cost reductions. Therefore, opportunities for cost reduction will be greatest in the two first stages: planning stage and pre-design stage.LO 3, AC 3.1
Which of the following factors is most likely to be a barrier to new entrant in agriculture?
Answer(s): B
Barriers to Entry to Agriculture: If stakeholders are going to address the need for new, conserva-tion- minded farmers, they must understand the barriers these farmers encounter when transitioning into the profession. A review of the literature revealed a number of barriers--most of them structural-- to entry to agriculture.While each barrier is distinct, they are all interconnected. Though not an exhaustive list, the following barriers are ones that were most frequently mentioned in the literature:- Access to Affordable Land- Startup Capital- Lack of Agricultural Knowledge and Experience- Lack of Knowledge about Farm Business Planning- Discrimination- Student Loans- Limited Access to Markets- Affordable Housing and Affordable Healthcare...Source: Exploring the Barriers to Entry to Agriculture: Challenges Facing Beginning Farmers in North Carolina - Kelley Robbins-Thompson
CIPS study guide page 80-81LO 2, AC 2.2
Andrew is responsible for procurement of capital assets at Lumber Ltd. He is devising new business case for the purchase of a new band saw. The purchase price of the saw is $50,000. Andrew estimates that the machine will generate $10,000 per year of net cash flow.What is the payback period of this band saw?
Payback period is the time in which the initial outlay of an investment is expected to be recovered through the cash inflows generated by the investment. It is one of the simplest investment apprais-al techniques.Since cash flow estimates are quite accurate for periods in the near future and relatively inaccurate for periods in distant future due to economic and operational uncertainties, payback period is an indicator of risk inherent in a project because it takes initial inflows into account and ignores the cash flows after the point at which the initial investment is recovered. The formula to calculate the payback period of an investment depends on whether the periodic cash inflows from the project are even or uneven.If the cash inflows are even (such as for investments in annuities), the formula to calculate payback period is:Payback Period = Initial Investment / Net Cash Flow per Period When cash inflows are uneven, we need to calculate the cumulative net cash flow for each period and then use the following formula:Payback Period =A + (B/C)Where, A is the last period number with a negative cumulative cash flow; B is the absolute value (i.e. value without negative sign) of cumulative net cash flow at the end of the period A; andC is the total cash inflow during the period following period A Cumulative net cash flow is the sum of inflows to date, minus the initial outflow.
- Payback Period | Formulas, Calculation & Examples (xplaind.com)- CIPS study guide page 44-47LO 1, AC 1.3
Which of the following is an advantage of competitive benchmarking over other types of bench- marking?
Competitive benchmarkingCompetitive benchmarking is a direct competitor-to-competitor comparison of a product, service, process, or method. This form of benchmarking provides an opportunity to know yourself and your competition better; combine forces against another common competitor. An example of competitive benchmarking within the Department of Defense, might include contrasting Army and Air Force supply systems for Joint initiatives. Within the private sector, two or more American car companies might benchmark for mutual benefit against common international competitor; or, rival chemical companies benchmark for environmental compliance.Benefits- Comparing like processes- Know your competition better- Possible partnership- Useful for planning and setting goals- Similar regulatory issuesChallenges- Difficult legal issues- Relatively low performance improvement- Threatening- Limited by trade secrets- May provide misleading information- May not get best-in-class comparisons- Competitors could capitalize on your weaknessesSource: USN Benchmarking Handbook
CIPS study guide page 50LO 1, AC 1.3
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