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APICS Certified in Planning and Inventory Management(Part 2) Sample Questions:

1. The production plan relates to a firm's financial planning because it is used to:

A) determine variable costs.
B) identify future cash needs.
C) calculate standard product costs.
D) project payroll costs.

2. An important benefit of an effective work cell layout is:

A) improved space utilization.
C increased machine utilization.
B) reduced maintenance.
C) increased changeover efficiency.

3. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

A) Decreased fixed assets
B) Increased accounts receivable
C) Decreased retained earnings
D) Increased intangible assets

4. Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A) Material prices are forecasted to increase
B) Volumes are forecasted to increase
C) Functional layouts are being utilized
D) Implementing a pull system in production

5. Which of the following environments would benefit most from full pegging?

A) Make-to-order (MTO)
B) Distribute-to-order
C) Assemble-to-order (ATO)
D) Make-to-stock (MTS)

Solutions: