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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

Which of the following BEST describes a cash flow budget?

Options:

A.

A budget that links expenditures to revenue within each budgetary period

B.

A process in which managers must begin each budgetary period with no predetermined allocations

C.

A financial plan specifying the amount of money to be spent on plant and equipment

D.

A budget that shows individual expenses without tying the expenses to broader goals

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Question 2

EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment. Supplier A has been very successful in meeting EFG's stringent quality specifications, which has been critical for EFG.

EFG learns that Supplier A plans to acquire a smaller firm which makes components similar to those under contract with EFG. EFG is concerned that the supplier may transfer its contract to the new subsidiary, leading to compromises in quality. Given this situation, which of the following is the BEST course of action for EFG to take?

Options:

A.

Negotiate with Supplier A to remove the changes clause from the contract

B.

Negotiate with Supplier A to strengthen the indemnification clause in the contract

C.

Negotiate with Supplier A to add a consent of assignment clause to the contract

D.

Take no action, as Supplier A must supply the chips at the same quality level no matter who manufactures them

Question 3

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?

Options:

A.

Risk analysis

B.

Spend analysis

C.

Market analysis

D.

Cost/price analysis