ISM cpsm1 practice test

Foundation of Supply Management Exam


Question 1

A scoreboard is simply a form of performance measurement and management thatrecords the
ratings from a performance evaluation process.

  • A. True
  • B. False
Answer:

A

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Question 2

The costs of logistics services should be determined; these costs plus an added value ormarkup
becomes the:

  • A. Transfer price
  • B. Productivity cost
  • C. Operational price
  • D. Professional supply cost
Answer:

A

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Question 3

A measure of velocity of total inventory movement through the organization, found bydividing
annual sales by the average aggregate inventory value maintained during theyear is called:

  • A. Inventory proceeds
  • B. Inventory turnover
  • C. Inventory yield
  • D. Inventory return
Answer:

B

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Question 4

Which of the following is the area of concern to logistics?

  • A. Inventory
  • B. Transportation
  • C. Customer service
  • D. All of the above
Answer:

D

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Question 5

Organizations that perform freight auditing are called:

  • A. Traffic consultants
  • B. Auditing consultants
  • C. Transportation consultants
  • D. Service consultants
Answer:

A

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Question 6

When both parties end a negotiation feeling content with what they have bargained, thisis referred
to as:

  • A. Procurement scheme
  • B. win-win proposition
  • C. Superior intention
  • D. Disputed proposal
Answer:

B

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Question 7

The supply management professional may use which mean to resolve the logicalconflicts?

  • A. Litigation
  • B. Negotiation
  • C. Acceptance
  • D. All of the above
Answer:

D

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Question 8

Terms where the seller is responsible for delivering the goods to a carrier named by thebuyer is the:

  • A. Group E
  • B. Group F
  • C. Group C
  • D. Group K
Answer:

B

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Question 9

Which of the following is NOT the group of International Commercial Terms?

  • A. Group E
  • B. Group F
  • C. Group C
  • D. Group K
Answer:

D

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Question 10

Who retain experts in global shipping to assist smaller organizations that do not have thenecessary
experience or expertise?

  • A. Global trade fleet
  • B. Global third parties
  • C. Foreign freight forwarders
  • D. Global shipping and inspections
Answer:

C

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