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Exam Code: CPSMExam Name: Certified Professional in Supply Management (CPSM)
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Exam Code: 630-008Exam Name: C.P.M. Module 4: Management
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NO.1 Which of the following is NOT a good indicator of purchasing department
performance?
A. Quality rejection rates for major items.
B. Number of purchase orders issued.
C. Percentage of on-time deliveries.
D. Number of stockout situations.
Answer: B
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NO.2 Which of the following theories suggests that managers can attain the greatest level
of employee motivation by determining the most desirable outcomes?
A. Theory X.
B. Theory Z.
C. Expectancy theory.
D. Scientific management.
E. Motivation-Hygiene theory.
Answer: C
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NO.3 Certkiller .com has more than 10,000 employees located on two regional branches
and on several smaller branches. Annual purchases of goods and services for
Certkiller .com exceed $150 million. In which of the following ways would
Certkiller .com LEAST likely benefit from a highly centralized purchasing function?
A. Improvements due to decreased duplication of effort.
B. Adherence to organization-wide standards and objectives.
C. Savings from standardization and improved economies of scale.
D. Satisfaction of product and source preferences for internal customers.
Answer: D
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NO.4 Which of the following does profit planning begin?
A. Business plans.
B. Long-range strategic plans.
C. Short-range strategic plans.
D. Strategic and operational plans.
Answer: D
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NO.5 Which of the following methods should a purchasing manager use when evaluating
individual employee performance?
A. Performance standards set by the U.S. Department of Labor.
B. The requirements of the job, including position descriptions.
C. Management By Objectives, whether or not the employee helped set the objectives.
D. Uniform company-wide standards of performance developed by the human resources
department.
Answer: B
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NO.6 Which of the following is LEAST important when evaluating buyer performance?
A. Quality of work.
B. Quantity of work.
C. Personal appearance.
D. Communication skills.
Answer: C
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NO.7 Which of the following is NOT an appropriate measure of performance for a
purchasing department?
A. Average time to place requisitions.
B. Total dollars contributed to profits.
C. Total dollars purchased per supplier.
D. Total product cost reduction compared to budget.
Answer: C
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NO.8 You work as a purchasing manager at Certkiller .com. An employee that has been at
Certkiller .com for 20-years has become accustomed to coming to work 30-45
minutes late. Initially, this was due to child-rearing responsibilities, but now is a
simply habit. The supervisor has asked the employee several times if there was a
problem and the answer has always been "no." The problem is beginning to have a
negative impact on the morale of the rest of the department. Which of the following
would be your BEST course of action in this situation?
A. Dismiss the employee.
B. Have the employee attend counseling sessions.
C. Ask the human resources department to intervene and find a solution to the problem.
D. Set goals with the employee to improve on arrival time, and include a written report in
the employee's file.
Answer: D
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