Most Recent APICS CSCP Exam Questions & Answers

Fixed costs are those expenses that remain constant regardless of the volume of output produced. These costs do not fluctuate with changes in production levels, making them independent of output volume. Examples of fixed costs include rent, salaries, and insurance. They are incurred even when production levels are zero. Fixed costs are not dependent on asset utilization, inversely proportionate to output, or constant through the useful life of the asset but are instead constant in relation to production volume.

Horngren, C. T., Datar, S. M., & Rajan, M. V. (2014). Cost Accounting: A Managerial Emphasis. Pearson.

Drury, C. (2013). Management and Cost Accounting. Cengage Learning.

Increasing market share for products that are critical manufacturing components can be effectively achieved by providing a level of service that enhances customer uptime. Uptime refers to the operational time that the customer's equipment or processes are available and functioning. By ensuring timely delivery, reliable quality, and quick response to service needs, suppliers can significantly reduce downtime for their customers, thereby increasing customer satisfaction and loyalty. This high level of service differentiates the supplier from competitors and makes them a preferred partner, which can lead to increased market share. Reference: Christopher, M. (2016). Logistics & Supply Chain Management.[

In a market characterized by frequently changing product demand, short lead times, and intense competition, reducing cycle times is critical to maintaining competitiveness. By reducing the time it takes to produce and deliver products, a company can respond more quickly to changes in demand and market conditions, thereby gaining a competitive edge.

Increasing the labor force (A) might help in certain situations but does not address the core issue of responsiveness and efficiency.

Increasing work-in-process (WIP) inventory (B) could lead to higher costs and inefficiencies.

Matching competitors' prices (D) addresses price competition but does not enhance operational competitiveness or responsiveness.

Hopp, W. J., & Spearman, M. L. (2008). Factory Physics. Waveland Press.

Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson.

Context: Strategic supply chain activities are pursued to achieve long-term business objectives.

Options Breakdown:

A . Gain competitive advantage: Strategic activities enhance a firm's market position through improved efficiency, customer service, and innovation.

B . Reduce total cost of ownership (TCO): While important, this is often a tactical goal rather than the primary strategic driver.

C . Decrease inventory: Inventory reduction is a tactical benefit but not the main strategic reason.

D . Increase product life cycles: Extending product life cycles can be a goal, but it is not the primary strategic driver.

Correct Answer Justification: The primary reason for engaging in strategic supply chain activities is to gain a competitive advantage by enhancing overall performance and customer satisfaction.

Strategic supply chain management literature

Industry analyses on the benefits of strategic supply chain initiatives

After two firms have established an initial relationship for Collaborative Planning, Forecasting, and Replenishment (CPFR), the next logical step is to create joint business plans for the products. This step involves aligning on business objectives, market strategies, and goals for the collaboration. Creating joint business plans ensures that both parties have a clear and shared understanding of their roles, responsibilities, and expectations, which is essential for the success of CPFR initiatives. It helps in setting the stage for effective collaboration, mutual trust, and long-term partnership.

''Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage'' by Dirk Seifert

APICS Dictionary, 16th Edition