ISM CPSM Exam Dumps PDF
CPSM Exam 1 - Foundation of Supply Management
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Question 1
The Incoterm in which all responsibilities including the costs and risks are passed to the buyer at the sellers loading dock is?
A. FCA - FREE CARRIER
B. CFR - COST and FREIGHT
C. EXW - EX WORKS
D. FAS - FREE ALONGSIDE SHIP
Answer: C
Question 2
Budget process for the supply management professional is called?
A. Supply management budgeting
B. Supply chain budget
C. Supply management budget preparation
D. Supply chain metrics
Answer: D
Question 3
When the nature of the specifications of a product or service are not clearly defined or changes in the specifications are anticipated the procurement method is best.
A. Open market purchase techniques
B. Succession bidding process
C. Negotiation for best price best/product service
D. Competitive market acquisition tool
Answer: C
Question 4
If a supplier proposes work that is different from the work specified by the supply management professional this is referred to as a/an?
A. Complete review process to the request for proposal.
B. Acceptable change for the request for proposal.
C. Dispute resolution process to the request for proposal.
D. Alternate Proposal for the request for proposal.
Answer: D
Question 5
An instance that may prohibit an organization from obtaining more than one proposal is called ? The reason for this includes specialization of the resources required to deliver the product or service, a lack of competition in a specific region, and regulatory restrictions. It is important to ensure that this bid is competitive based on all of your information.
A. Restricted negotiation
B. Restricted bidding
C. Restricted market
D. Restricted competition
Answer: D
Question 6
A tax levied on your trade good which is based on the value of the taxed item is called a/an?
A. Par value taxation of goods.
B. Total value taxation of goods.
C. Fair evaluation taxation of goods.
D. Ad valorem taxation of goods.
Answer: D
Question 7
A precontractual document used to express the expectation of contract formation in the future is called?
A. Purchase order agreement document.
B. Purposeful Letter of Intent document.
C. Solicitation response document.
D. Statement of Work for proposed contractual obligations.
Answer: B
Question 8
Solicitations for bids take many forms the most frequently used are the offer to buy, informal bids, electronic solicitations and competitive proposals. In an offer to buy versus offer to sell situation it is advantageous for organizations to solicit suppliers offers to sell otherwise what occurs?
A. You may purchase the items twice.
B. The goods may not have quality controls.
C. An offer to buy may be sent to a supplier who fails to respond.
D. You have no cost control.
Answer: C
Question 9
Negotiations can be controlled by controlling the what?
A. Selection process or how the requests for proposals are scored.
B. Negotiation site or location of the supply management negotiation
C. Information flow internally and with external bidders.
D. Negotiation team or the members of it.
Answer: B
Question 10
ISO provides guidance for continual improvement of systems.
A. 9000
B. 9004
C. 15011
D. 9001
Answer: B