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ISM CPSMB Exam Syllabus Topics:

ISM CPSM Bridge Sample Questions:

1. When purchasing goods from China, the price does not usually contain packaging or logistics and may contain set up or freight forwarding costs. What is this type of cost?

A) Delivery cost minus duty costs
B) Total acquisition cost
C) Total implied freight cost
D) Total cost minus cost of goods sold

2. Which of the following as not a function of the target costing process?

A) Target selling price for products and services.
B) Continuous improvement for products and services.
C) Research and development for products and services.
D) Desired profit margin for products and services.

3. Metrics measure productivity, efficiency and how well a plan is implemented. Which metric is used to show how effectively an organization spends purchase dollars?

A) Administration and control measures
B) Price performance measures
C) Cost-effectiveness measures
D) Workload measures

4. Supply side collaboration requires information from the buyer and supplier on dependent and independent variables. Information from the supply side includes?

A) Delivery problems and inventory levels
B) Only supply and demand
C) Personnel shift requirements, storage of goods, logistics schedules
D) Internal schedule, storage constraints, and on-hand inventories

5. Which of the following price strategies would one use if the seller determines demand and prices at a level that meets customer expectations and provides an acceptable profit?

A) Market based approach
B) Time and material contracts
C) Market demand pricing
D) Loss leader pricing

Solutions: