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ISM Supply Management Core Exam Sample Questions (Q22-Q27):

NEW QUESTION # 22
DEF, Inc. wants to ensure adequate material supply for an emerging product with high quality specifications for the raw materials. Given this situation, which of the following would be the BEST course of action for DEF to take?

A. Select a preferred supplier to cover the bulk of the requirement and supplement the balance with qualified suppliers
B. Choose a supplier with a large infrastructure and high quality standards
C. Select an approved supplier and work collaboratively with it to meet the entirety of the organization's quality requirements
D. Ensure a wide selection of suppliers are offered opportunities to submit bids

Answer: C

Explanation:
* Need for High-Quality Materials: DEF, Inc. requires high-quality raw materials for an emerging product.
* Collaborative Approach: Selecting an approved supplier and working collaboratively ensures that the supplier fully understands and meets the quality specifications.
* Long-Term Relationship: This approach helps build a long-term relationship with the supplier, fostering continuous improvement and reliability.
* Quality Assurance: By working closely, DEF can monitor and ensure adherence to quality standards throughout the supply process.
References
* CIPS. (n.d.). Building Supplier Relationships for Quality Assurance.
* ISM. (n.d.). Collaborative Supplier Management.

NEW QUESTION # 23
A company creates a corporate sourcing team with category management responsibilities. Previously, the firm had no dedicated sourcing staff, and all procurement was decentralized and transactional. The sourcing team is ready to commence its initial project. Which of the following should the team do FIRST?

A. Determine whom to engage
B. Assemble subject matter experts
C. Deliver the project charter
D. Assign a project lead

Answer: C

Explanation:
The first step for the newly created corporate sourcing team is to deliver the project charter. This charter serves as a formal document that outlines the project's objectives, scope, stakeholders, roles, and responsibilities. It provides a clear foundation and direction for the project, ensuring all team members and stakeholders are aligned. The charter acts as a roadmap, guiding the team through the project's execution and helping to manage expectations and resources effectively.
References:
* Project Management Institute (PMI) standards on project charters.
* "Strategic Sourcing and Category Management" by Magnus Carlsson.
* Corporate sourcing best practices from CIPS (Chartered Institute of Procurement & Supply).

NEW QUESTION # 24
MNO Inc. is a U.S.-based manufacturing company that imports sub-assemblies from Asia and incorporates them into several products. The firm orders in large quantities to obtain the lowest price per unit, and then pulls the items as required to produce finished goods. MNO wishes to improve its cash flow and seeks ways to reduce the impact of import duties. Which of the following Is the BEST approach for the company to use?

A. Obtain a temporary import bond
B. Apply for duty refunds when goods are exported
C. Place goods in a bonded warehouse and delay duty payment
D. Review tariff classifications for potential savings opportunities

Answer: C

NEW QUESTION # 25
An accountant pays $30,000 for inventory purchased on credit last month. This payment will impact the accounting equation by decreasing assets and:

A. Decreasing liabilities
B. Decreasing owner's equity
C. Increasing assets
D. Increasing owner's equity

Answer: A

NEW QUESTION # 26
What transaction is presented in the above journal entry?

A. Rent paid in installments
B. Accrual for rent outstanding
C. Payment of rent in advance
D. Amortization of prepaid rent

Answer: D

NEW QUESTION # 27
......

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