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QUESTION 45
A government is considering issuing a fixed number of permits allowing firms to pollute. When would this system fail to reduce pollution?

QUESTION 46
A product manager wants to predict a sales team’s performance for the upcoming year based on the average price of the products the team sells and the number of staff members on the sales team. Team performance is measured on a scale from 0 to 100. The resulting regression equation is below:
Performance = 33.50 – 0.02(product price) + 0.79(number of staff members)
What is the predicted team performance for the upcoming year, given that the average price of products sold is forecasted to be $40, and there are 25 people on the sales team?

QUESTION 47
Although they may vary, cash flows from financing activities in a mature company are usually:

QUESTION 48
In determining Earnings before Interest and Taxes (EBIT), an analyst needs to make what adjustments to the net income amount with regards to income statement items? (Select all that apply.)

QUESTION 49
Which of the following is considered the HIGHEST level in a supply chain’s strategic plan?

QUESTION 50
A supply manager Is conducting the following activities:
*Mapping between category codes and category maps
*Normalizing supplier information
*Performing supplier mapping
*Refining mapping with financial systems data
Which of the following is the supply manager engaged in?

QUESTION 51
Which of the following is MOST appropriate for review by an audit committee?

QUESTION 52
Which of the following situations is an example of materiality in accounting?

QUESTION 53
A procurement manager solicits bids for renovation of a building and writes a service level agreement. The agreement includes language regarding the proper disposal of waste. This is an example of a(n)

QUESTION 54
In which situation would it be appropriate to use time-series data?

QUESTION 55
Consider the following data for four separate machines:
Purchase PriceProjected Annual SavingsEstimated Life (in years)
Machine W$100,000$17,0006
Machine X$112,000$23,0007
Machine Y$143,000$19,0009
Machine Z$150,000$25,0008
Which machine produces the HIGHEST simple return on investment (ROI) over its useful life?

QUESTION 56
A firm buys a particular product that has low business impact and low supply market complexity. How would this product be categorized using the Kraljic classification model?

QUESTION 57
To improve supplier innovations, a firm plans to conduct supply market research, identify emerging technologies, and analyze the capabilities of current and potential suppliers. Which of the following would be the MOST effective way to accomplish this goal?

QUESTION 58
An individual has relocated to a new city for a job and is looking for an apartment. Apartments in this city tend to be low in price but are often in disrepair and lack extra amenities. For each new apartment that comes on the market, there are dozens of people who wish to rent it. What could explain these conditions?

QUESTION 59
DEF, Inc. has a choice of several transportation providers in the immediate area. The firm decides to conduct a spend analysis to identify opportunities for cost savings through service standardization. In this situation, which of the following will be MOST Important for the company to analyze?

QUESTION 60
UVW, Inc. wants to expand its production of several products to meet anticipated demand. UVW’s supply management team works with other departments to find the best ways to maximize output at minimum cost.
The team determines that production of Item A can be increased from 100 to 120 units per day using existing facilities. However, the firm’s goal is at least 130 units per day. Which of the following factors will be MOST important In deciding whether to proceed with the higher production goals?

QUESTION 61
Which of the following is the BEST long-term strategy for creating top line revenue growth and increased sales for both an organization and its key suppliers?

QUESTION 62
Which of the following explains external category market conditions by describing competitive factors within an industry?

QUESTION 63
UVW, Inc. issues a Request for Quotation (RFQ) for urgently-needed safety equipment. The equipment must be installed immediately in order to keep the firm in compliance with safety regulations. UVW is contacted by a small, minority-owned company which asks for two more weeks to submit its quotation, as its technical expert is out sick. In this situation, which of the following is the MOST appropriate course of action for UVW to take?

QUESTION 64
A company’s Balance Sheet for the year ended Dec. 31, 2013 is as follows:

(In millions)
The company is MOST likely in which of the following industries?

QUESTION 65
A student wants to know the probability of getting a value less than -0.76 in a standard normal distribution (=0, =1). The student finds that the area under the curve to the left of positive 0.76 is 0.7764. What is the probability of getting a value less than -0.76?

QUESTION 66
A sourcing manager is negotiating a contract with a human resources supplier that has access to employee data, including social security numbers. The supplier proposes an annual cap of $10,000 on overall liability. In this situation, which of the following is the MOST important stakeholder for the sourcing manager to consult in regard to this supplier?

QUESTION 67
A college has recently finished building a new dining hall on campus. School administrators wish to survey students regarding their thoughts on the new dining hall. Which of the options below represents a correct sampling method?