ISM CPSM Dumps

ISM CPSM Dumps PDF

CPSM Exam 1 - Foundation of Supply Management
  • 519 Questions & Answers
  • Update Date : July 15, 2024

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ISM CPSM Sample Questions

Question # 1

The Incoterm in which all responsibilities including the costs and risks are passed to the buyer at the sellers loading dock is?

A. FCA - FREE CARRIER  
B. CFR - COST and FREIGHT  
C. EXW - EX WORKS  
D. FAS - FREE ALONGSIDE SHIP  



Question # 2

Budget process for the supply management professional is called?  

A. Supply management budgeting  
B. Supply chain budget  
C. Supply management budget preparation  
D. Supply chain metrics  



Question # 3

When the nature of the specifications of a product or service are not clearly defined or changes in the specifications are anticipated the procurement method is best. 

A. Open market purchase techniques  
B. Succession bidding process  
C. Negotiation for best price best/product service  
D. Competitive market acquisition tool  



Question # 4

If a supplier proposes work that is different from the work specified by the supply management professional this is referred to as a/an?

A. Complete review process to the request for proposal.  
B. Acceptable change for the request for proposal.  
C. Dispute resolution process to the request for proposal.  
D. Alternate Proposal for the request for proposal.  



Question # 5

An instance that may prohibit an organization from obtaining more than one proposal is called ? The reason for this includes specialization of the resources required to deliver the product or service, a lack of competition in a specific region, and regulatory restrictions. It is important to ensure that this bid is competitive based on all of your information.

A. Restricted negotiation  
B. Restricted bidding  
C. Restricted market  
D. Restricted competition  



Question # 6

A tax levied on your trade good which is based on the value of the taxed item is called a/an?  

A. Par value taxation of goods.  
B. Total value taxation of goods.  
C. Fair evaluation taxation of goods.  
D. Ad valorem taxation of goods.  



Question # 7

A precontractual document used to express the expectation of contract formation in the future is called?  

A. Purchase order agreement document.  
B. Purposeful Letter of Intent document.  
C. Solicitation response document.  
D. Statement of Work for proposed contractual obligations.  



Question # 8

Solicitations for bids take many forms the most frequently used are the offer to buy, informal bids, electronic solicitations and competitive proposals. In an offer to buy versus offer to sell situation it is advantageous for organizations to solicit suppliers offers to sell otherwise what occurs?

A. You may purchase the items twice.  
B. The goods may not have quality controls.  
C. An offer to buy may be sent to a supplier who fails to respond.  
D. You have no cost control.  



Question # 9

Negotiations can be controlled by controlling the what?  

A. Selection process or how the requests for proposals are scored.  
B. Negotiation site or location of the supply management negotiation  
C. Information flow internally and with external bidders.  
D. Negotiation team or the members of it.  



Question # 10

ISO provides guidance for continual improvement of systems.  

A. 9000  
B. 9004  
C. 15011  
D. 9001  



Question # 11

Having the necessary tools for financial analysis includes review of appropriate supply management professional resources. The financial analysis resource Dun & Bradstreet provides? 

A. Industry norms and business ratios  
B. Wholesale costs  
C. Stock market analysis  
D. Retail costs for supply management  



Question # 12

One way to categorize market conditions is through the product life cycle which consist of five stages: precommercialization, introduction, growth, decline and?

A. Maturity stage of the five stages of the product life cycle.  
B. Advancement stage of the five stages of the product life cycle.  
C. ProductMty stage of the five stages of the product life cycle.  
D. End stage of the five stages of the product life cycle.  



Question # 13

Determining usage over the entire life of the product and not by the month or year alone is referred to as ?

A. Cycle usage  
B. Part usage determination  
C. Product or part life cycle  
D. Descriptive usage technique