CERTIFICATION EVALUATION EXAM 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ A positive net present value indicates that the investment has a rate of
return? Answer: Higher than the discount rate used in the calculation.
◉ Financial risk is an element in capital investment decisions and is
determined by? Answer: The additional risk placed on the firm when
debt financing is used.
◉ The basic demands of a materials management program require
establishing the need for the right product and in the correct? Answer:
Location
◉ By which means does an organization manage short-term obligations
and working capital? Answer: Liquidity rations
◉ what is the legal violation associated with policies and procedures
resulting in a wrongful act - one that violates a duty imposed by law and
is grounds for civil action? Answer: Tort
, ◉ What type of market research involves collection data about
customers via surveys, personal interviews, observations, and
conducting focus groups with members of the community? Answer:
Primary research
◉ Which type of budget begins with a forecast of volume for the coming
year, based on a review of the previous year's figures and any changes
expected for the coming year? Answer: Operating budget
◉ Which of the following determines how a patient evaluates quality of
care? Answer: Perception and expectation
◉ Motivation categorized as an activity performed for one's own
personal satisfaction is called? Answer: Intrinsic
◉ A simple formula for calculating downtime rate is? Answer: 100% -
{[Base Time - Downtime]/ Base Time}.
◉ Who is paid through Medicare Part A? Answer: Hospitals
◉ Which of the following should be used when preparing a payback
period analysis? Answer: initial investment/Annual benefits
◉ All of the following types of legal violations can apply to policies and
procedure EXCEPT? Answer: Unwritten rules.