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Exam : ISM 630-008
Title : C.P.M. Module 4: Management

1. You work as a purchasing manager at Certkiller .com. A female employee has been
working for Certkiller .com for about 12 years and has 3 years to go until her
scheduled retirement. Recently, she was laid off from her position, and her duties
were absorbed by younger workers in the department. Under which of the following
is she MOST likely to have a claim against the company?
A. Equal Employment Opportunity Act.
B. National Labor Relations Act.
C. Age Discrimination Act.
D. Executive Order 11246.
Answer: C

2. Which of the following is NOT an appropriate measure of performance for a
purchasing department?
A. Average time to place requisitions.
B. Total dollars contributed to profits.
C. Total dollars purchased per supplier.
D. Total product cost reduction compared to budget.
Answer: C

3. Which of the following does profit planning begin?
A. Business plans.
B. Long-range strategic plans.
C. Short-range strategic plans.
D. Strategic and operational plans.
Answer: D

4. You work as a purchasing manager at Certkiller .com. You are instructed to reduce
Certkiller .cm’s MRO supplier base from 50 to 1. Which of the following would be
your BEST course of action in this situation?
A. Buying at the lowest total cost, consistent with quality and service.
B. Achieving a high degree of cooperation with internal customers.
C. Developing reliable alternatives of supply.
D. Optimizing inventory turnover.
Answer: A

5. Which of the following can BEST enhance a measurement and control system for
evaluating buyer performance?
A. Including the buyer in the design of the system.
B. Including human resources in the design of the system.
C. Making a composite measurement of efficiency and effectiveness.
D. Being sufficiently broad in scope to allow the measurement of all contingencies.
Answer: A

6. Which of the following is LEAST important when evaluating buyer performance?
A. Quality of work.
B. Quantity of work.
C. Personal appearance.
D. Communication skills.
Answer: C

7. Which of the following is generally NOT strategic in nature?
A. New advertising schedule implementation.
B. New dividend policy direction.
C. New product development.
D. New sources of financing.
Answer: A

8. You work as a purchasing manager at Certkiller .com. An employee that has been at
Certkiller .com for 20-years has become accustomed to coming to work 30-45
minutes late. Initially, this was due to child-rearing responsibilities, but now is a
simply habit. The supervisor has asked the employee several times if there was a
problem and the answer has always been "no." The problem is beginning to have a
negative impact on the morale of the rest of the department. Which of the following
would be your BEST course of action in this situation?
A. Dismiss the employee.
B. Have the employee attend counseling sessions.
C. Ask the human resources department to intervene and find a solution to the problem.
D. Set goals with the employee to improve on arrival time, and include a written report in
the employee’s file.
Answer: D