APICS Exam CSCP Topic 2 Question 72 Discussion

Actual exam question for APICS's CSCP exam

Question #: 72
Topic #: 2

[All CSCP Questions]

A firm usually buys one month of requirements at a time but has decided to buy two months of requirements for a certain product to take advantage of an order quantity discount...kely made this decision because:

A..transportation costs will decrease since the firm is buying less often.

B..The firm would like to spend less time on placing orders.

C..The firm has determined that the price savings are greater than the extra holding cost.

DThe firm wants to improve its inventory turns.

Show Suggested Answer

Suggested Answer: B

by Nickolas at Jul 24, 2023, 09:33 PM

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Ernie

10 days ago

But what about the inventory turns? Wouldn't buying in larger quantities help improve that as well?

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Mattie

12 days ago

I agree with Pearly. The firm probably calculated that the price savings outweigh the extra holding cost.

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Pearly

14 days ago

I think the firm chose to buy two months of requirements because they want to save money.

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