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ISM Supply Management Core Exam Sample Questions (Q263-Q268):

NEW QUESTION # 263
Deferred Taxes can be which of the following account types? (Select all that apply.)

  • A. Asset
  • B. Expense
  • C. Owner's Equity
  • D. Liability
  • E. Revenue

Answer: A,D


NEW QUESTION # 264
Which of the following refers to the legal principle that prevents a person from asserting a position Inconsistent with his or her prior conduct, if injustice would result to a person who has changed position in reliance upon that conduct?

  • A. Mutual consideration
  • B. Estoppel
  • C. Severability
  • D. Conflict of interest

Answer: B


NEW QUESTION # 265
Which of the following refers to the process of generating information about the types of items sourced and their cumulative dollar value, to use for strategic and operational purchase planning?

  • A. Spend analysis
  • B. Regression analysis
  • C. Cost analysis
  • D. Portfolio analysis

Answer: A

Explanation:
Spend analysis is the process of collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance. It generates information about the types of items sourced and their cumulative dollar value, providing insights that can be used for strategic and operational purchase planning.
References
* Spend Analysis: The Window into Strategic Sourcing by Kirit Pandit and Haralambos Marmanis
* "Spend Analysis: A Critical Element of Strategic Sourcing" - Aberdeen Group


NEW QUESTION # 266
An oil & gas exploration company has employed its current offshore vessels for over ten years. The firm is seeking to bring its fleet up-to-date. The firm knows what results it requires, but with the changes that have occurred over the last decade, it is not sure what combination of vessel types and quantities will deliver the most efficient operations for its needs. Given this situation, which of the following will be MOST appropriate for this firm to issue?

  • A. Request for information (RFI)
  • B. Invitation for bid (IFB)
  • C. Request for quotation (RFQ)
  • D. Request for proposal (RFP)

Answer: D

Explanation:
* Company's Situation: The oil & gas exploration company needs to update its fleet of offshore vessels but is unsure about the best combination of vessel types and quantities.
* RFP Purpose: An RFP is used when the buyer knows the results it requires but needs detailed proposals from suppliers to determine the best solution.
* Comprehensive Proposals: RFPs allow suppliers to propose various solutions, including different combinations of vessel types and quantities, and explain how their proposals will meet the company's needs.
* Evaluating Solutions: The RFP process provides the company with the information needed to evaluate the most efficient and effective options for updating its fleet.
* Conclusion: Issuing an RFP is most appropriate to obtain detailed and varied proposals that will help the company make an informed decision.
References
* CIPS. (n.d.). The Use of Requests for Proposals (RFPs) in Procurement.
* ISM. (n.d.). Best Practices for RFP Development and Evaluation.


NEW QUESTION # 267
Topic 1, Business Analytic
Exhibit:

Based on the scatterplot below, which of the following correlation coefficients BEST describes the relationship between undergraduate GPA and beginning annual salary?

  • A. -0.2
  • B. 0.2
  • C. -0.9
  • D. 0.9

Answer: D


NEW QUESTION # 268
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