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ISM Supply Management Core Exam Sample Questions (Q167-Q172):

NEW QUESTION # 167
In Dec. of 2013, a company signed a promissory note and recorded a note payable of $150,000. This note is payable in three equal annual installments beginning from Dec. of 2014. How should the company report the note payable on its Dec. 31, 2013 balance sheet?

A. $50,000 in noncurrent liability and $100,000 in current liability
B. $50,000 in current liability and $100,000 in noncurrent liability
C. $150,000 in noncurrent liability
D. $150,000 in current liability

Answer: B

NEW QUESTION # 168
A company purchased a piece of equipment for $100,000 on Jan. 1, 2012. The estimated useful life is 10 years with no salvage value at the end of the10-year period. The company used the straight-line method to depreciate this equipment in 2012. However, in 2013, the company decided to change the depreciation method to the double-declining method. What effect did this change in depreciation methods have on the income statement for 2013 and the balance sheet as of Dec. 31, 2013?

A. The total assets decreased, and the net income decreased.
B. The total assets increased, and the net income decreased.
C. The total assets increased, and the net income increased.
D. The total assets decreased, and the net income increased.

Answer: A

NEW QUESTION # 169
A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity. If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?

A. Rent the office to another company, and earn $70,000 in economic profit.
B. Use the office, and earn $40,000 in economic profit.
C. Rent the office to another company, and earn $30,000 in economic profit.
D. Rent the office, and earn $35,000 in economic profit.

Answer: C

NEW QUESTION # 170
DEF Corporation is a supplier whose products no longer require incoming inspection. Which of the following BEST describes DEF's supplier categorization?

A. Certified
B. Approved
C. Certifiable
D. Partnered

Answer: A

Explanation:
* Definition of Certification: A certified supplier is one that has demonstrated the ability to consistently meet quality and performance standards, eliminating the need for incoming inspection.
* Supplier Evaluation: DEF Corporation has undergone thorough evaluation and has consistently delivered products that meet the required specifications.
* Quality Assurance: This status indicates a high level of trust in the supplier's processes and quality assurance measures.
* Benefits: Reducing or eliminating incoming inspections saves time and resources for the company.
References
* Supplier Certification Programs
* Quality Management Systems
* Procurement and Supply Chain Management Literature

NEW QUESTION # 171
A producer of high-end watches has a willingness to sell of $1,000. After a recession occurs, willingness to pay (WTP) for high-end watches drops to $900. What could the watch producer do to raise WTP for its good? (Select all that apply.)

A. Lower the price for the watch
B. Add a new feature to the watch
C. Raise the price for the watch
D. Advertise in a high-end department store's catalog
E. Design a new watch based on watches sold by competitors

Answer: B,D

NEW QUESTION # 172
......

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CORe Exam Dump - Latest CORe Exam Tips

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ISM Supply Management Core Exam Sample Questions (Q167-Q172):

Exam Questions For ISM CORe [Revised] - The Best Method To Pass The Exam

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