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

Limited Time Offer

25%

Off

Get Premium L4M7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Maia

11 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.

upvoted 0 times

Lang

6 days ago

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

upvoted 0 times

...

Reiko

13 days 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.

upvoted 0 times

...

Lilli

16 days 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!

upvoted 0 times

...

Lashawna

16 days ago

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

upvoted 0 times

...

Kathrine

18 days ago

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

upvoted 0 times

...

Vesta

18 days ago

I think the answer is C.

upvoted 0 times

...

Jarod

20 days ago

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

upvoted 0 times

...

Gearldine

21 days 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.

upvoted 0 times

...

Lorrine

26 days 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.

upvoted 0 times

Xuan

6 days ago

I agree, indirect supplies are costs that affect the operating cost of the business.

upvoted 0 times

...

Magdalene

1 months ago

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

upvoted 0 times

...

Alfreda

1 months ago

I think the answer is C.

upvoted 0 times

...