ISM Exam CPSM1 Topic 1 Question 106 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 106
Topic #: 1

[All CPSM1 Questions]

Which of the following is NOT the component used to calculate the inventoryholding costs?

AReleased rates

BInvested funds

CShrinkage

DObsolescence

Show Suggested Answer

Suggested Answer: D

by Jerrod at Jan 26, 2025, 02:43 PM

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Daniel

4 days ago

A) Released rates? What kind of answer choice is that? Sounds like a typo to me.

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Lashawn

6 days ago

D) Obsolescence is definitely a component of inventory holding costs. That's a no-brainer.

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Rene

8 days ago

Hmm, I'm pretty sure C) Shrinkage is one of the factors that contribute to inventory holding costs. That's a tricky one.

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An

13 days ago

Actually, I think it's D) Obsolescence because it's not directly related to inventory holding costs.

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Cortney

16 days ago

I think B) Invested funds is not a component of inventory holding costs. That's more related to the cost of capital.

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Elena

19 days ago

I disagree, I believe the answer is C) Shrinkage.

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An

24 days ago

I think the answer is A) Released rates.

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