APICS CSCP EXAM 2026 SUPPLY CHAIN
MANAGEMENT TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
◉ value chain. Answer: the functions within a company that add
value to the goods/services that the org. sells to customers and for
which it receives payment
◉ spend management. Answer: managing the outflow of funds in
order to buy goods and services
◉ service industry. Answer: 1. an org that provides an intangible
product
2. all orgs except farming, mining, and manufacturing
◉ return on investment. Answer: a relative measure of financial
performance that provides a means for comparing various
investments by calculating the profits returned during a specified
time period. in the theory of constraints, this is calculated as
(throughput - operating expenses)/investment
◉ strategic planning. Answer: the process of developing a strategic
plan
,◉ value stream. Answer: The process of creating, producing, and
delivering a good or service to the market
◉ obsolecense. Answer: 1. the condition of being out of date
2. the decrease in the value of an asset brought about by the
development of new and more economical processes, methods, or
machinery
3. the loss of usefulness or worth of a product or facility as the result
of the appearance of better or more economical products or facilities
◉ return on assets. Answer: net income for the previous 12
months/total assets
◉ inventory valuation. Answer: the value of the inventory at either
its cost or its market value. cost value of inventory is computed on a
FIFO, LIFO, or standard cost basis to establish cost of goods sold
◉ value stream mapping. Answer: a lean production tool to visually
understand the flow of materials from supplier to customer that
includes the current process and flow as well as the value- and non
value-added steps
◉ keiretsu. Answer: a form of cooperative relationship among
companies in Japan where the companies remain largely
,independent, even though they work closely in many ways such as
financial backing
◉ push system. Answer: 1. in production, the production of items at
times required by a given schedule planned ahead
2. in material control, the issuing of material according to a given
schedule
3. in distribution, a system for replenishing field warehouses where
replenishment decision making is centralized, usually at the
manufacturing site
◉ partnership. Answer: 1. a form of business ownership that is not
organized as a separate legal entity, but entailing ownership by 2+
persons
2. in supply chain, a relationship based on trust, shared risk, and
rewards aimed at achieving a competitive adantage
◉ value added. Answer: 1. in accounting, the addition of direct labor,
direct material, and allocated overhead assigned at an operation
2. in manufacturing, the actual increase in utility from the viewpoint
of the customer as a part is transformed from raw material to
finished inventory
, ◉ global strategy. Answer: a strategy that focuses on improving
worldwide performance through sales and marketing of common
goods and services with minimum product variation by country
◉ cost of goods sold. Answer: an accounting classification useful for
determining the amount of direct materials, direct labor, and
allocated overhead associated with the products sold during a given
period of time
◉ pull system. Answer: 1. in production, the production of items
only as demanded for use or to replace those taken for use
2. in material control, the withdrawal of inventory as demanded by
the using operations
3. in distribution, a system where replenishment decisions are made
at the field warehouse
◉ supply chain management. Answer: the design, planning,
execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with demand,
and measuring performance globally
◉ product differentiation. Answer: a strategy of making a product
distinct from the competition on a nonprice basis such as
availability, durability, reliability, or quality
MANAGEMENT TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
◉ value chain. Answer: the functions within a company that add
value to the goods/services that the org. sells to customers and for
which it receives payment
◉ spend management. Answer: managing the outflow of funds in
order to buy goods and services
◉ service industry. Answer: 1. an org that provides an intangible
product
2. all orgs except farming, mining, and manufacturing
◉ return on investment. Answer: a relative measure of financial
performance that provides a means for comparing various
investments by calculating the profits returned during a specified
time period. in the theory of constraints, this is calculated as
(throughput - operating expenses)/investment
◉ strategic planning. Answer: the process of developing a strategic
plan
,◉ value stream. Answer: The process of creating, producing, and
delivering a good or service to the market
◉ obsolecense. Answer: 1. the condition of being out of date
2. the decrease in the value of an asset brought about by the
development of new and more economical processes, methods, or
machinery
3. the loss of usefulness or worth of a product or facility as the result
of the appearance of better or more economical products or facilities
◉ return on assets. Answer: net income for the previous 12
months/total assets
◉ inventory valuation. Answer: the value of the inventory at either
its cost or its market value. cost value of inventory is computed on a
FIFO, LIFO, or standard cost basis to establish cost of goods sold
◉ value stream mapping. Answer: a lean production tool to visually
understand the flow of materials from supplier to customer that
includes the current process and flow as well as the value- and non
value-added steps
◉ keiretsu. Answer: a form of cooperative relationship among
companies in Japan where the companies remain largely
,independent, even though they work closely in many ways such as
financial backing
◉ push system. Answer: 1. in production, the production of items at
times required by a given schedule planned ahead
2. in material control, the issuing of material according to a given
schedule
3. in distribution, a system for replenishing field warehouses where
replenishment decision making is centralized, usually at the
manufacturing site
◉ partnership. Answer: 1. a form of business ownership that is not
organized as a separate legal entity, but entailing ownership by 2+
persons
2. in supply chain, a relationship based on trust, shared risk, and
rewards aimed at achieving a competitive adantage
◉ value added. Answer: 1. in accounting, the addition of direct labor,
direct material, and allocated overhead assigned at an operation
2. in manufacturing, the actual increase in utility from the viewpoint
of the customer as a part is transformed from raw material to
finished inventory
, ◉ global strategy. Answer: a strategy that focuses on improving
worldwide performance through sales and marketing of common
goods and services with minimum product variation by country
◉ cost of goods sold. Answer: an accounting classification useful for
determining the amount of direct materials, direct labor, and
allocated overhead associated with the products sold during a given
period of time
◉ pull system. Answer: 1. in production, the production of items
only as demanded for use or to replace those taken for use
2. in material control, the withdrawal of inventory as demanded by
the using operations
3. in distribution, a system where replenishment decisions are made
at the field warehouse
◉ supply chain management. Answer: the design, planning,
execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with demand,
and measuring performance globally
◉ product differentiation. Answer: a strategy of making a product
distinct from the competition on a nonprice basis such as
availability, durability, reliability, or quality
