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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Maia

28 days ago

I was just about to choose B, but then I realized that sub-assemblies are more like direct supplies. C is the way to go - indirect supplies are the behind-the-scenes costs that keep the business running.

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Curtis

3 days ago

I agree, indirect supplies are the behind-the-scenes costs that are necessary for the business.

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Alesia

3 days ago

Definitely, indirect supplies may not directly go into the final product, but they are essential for the business operations.

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Ernest

13 days ago

Yeah, I agree. Indirect supplies are those hidden costs that are necessary for the business to function.

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Ligia

16 days ago

I think C is the correct answer. Indirect supplies do impact the operating cost of the business.

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Lang

23 days ago

I think C is the correct answer. Indirect supplies are costs that impact operating costs.

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Reiko

1 months ago

Definitely C. Indirect supplies are the unsung heroes of the business world. They may not be flashy, but they're the glue that holds everything together.

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Lilli

1 months ago

Haha, I bet the person who wrote this question is trying to trick us. Indirect supplies are like the secret ingredient that makes the whole business work, not just the end result!

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Lashawna

1 months ago

I'm not sure, but I think it's between C and D.

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Kathrine

1 months ago

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

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Vesta

1 months ago

I think the answer is C.

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Jarod

1 months ago

I'm not sure, but I think it's between C and D.

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Gearldine

1 months ago

I was torn between A and C, but I'll go with C. Indirect supplies are those costs that affect the overall operation of the business, not just the final product.

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Candra

11 days ago

I agree, indirect supplies are not just about the final product quality, but also affect the overall operation of the business.

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Apolonia

13 days ago

I think indirect supplies are costs that have an impact on the operating cost of the business.

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Lorrine

1 months ago

I think the correct answer is C. Indirect supplies are costs that have an impact on the operating cost of the business. This makes the most sense to me.

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