CIPS Exam L4M7 Topic 6 Question 17 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 17
Topic #: 6

[All L4M7 Questions]

Inventory may be classified into direct and indirect supplies. Which of the following is a characteristic of indirect supplies?

AIndirect supplies have a significant impact on the quality of the final product

BIndirect supplies are the sub-assemblies required in the final product

CIndirect supplies are costs that have an impact on the operating cost of the business

DIndirect supplies refer to stock that is partway through manufacture

Show Suggested Answer

Suggested Answer: C

Purchase order lead time (POLT) refers to the number of days from when a company places an order for production inputs it needs, to when those items arrive at the manufacturing plant.

LO 2, AC 2.3

by Nana at May 27, 2023, 05:51 AM

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Magdalene

2 days ago

I agree with Alfreda, indirect supplies do impact operating costs.

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Alfreda

6 days ago

I think the answer is C.

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