Question 1

What is the smallest aisle width that standard counterbalanced forklifts can operate in?

Options :

A : 4.9 ft - 5.2 ft

B : 10.5 ft - 13.1 ft

C : 5.6 ft - 5.9 ft

D : 6.9 ft - 7.2 ft

Answer: B

Question 2

Amanda is the purchasing manager for AB Construction based in France. She is considering purchasing an asset from overseas but knows she must account for fluctuations in exchange rates in the contract. Is Amanda correct?

Options :

A :

No, as it will be better to purchase the asset in AB Construction-s local currency as it would be efficient and more stable

B :

Yes, as AB Construction could pay more for the asset than intended and Amanda should include a currency fluctuation clause

C : No, as the price can be re-negotiated post-contract sign-off by AB Construction and the supplier

D : Yes, as Amanda will be able to decide the currency exchange rates to be used

Answer: B

Question 3

Ranger Mobile Ltd is a new smartphone manufacturer that uses the just-

Options :

A : Insurance premiums

B : Resale value of the warehouse

C : Costs of facilities management

D : Technology upgrade costs

E : Initial construction costs

Answer: C,D

Question 4

A big investment bank wants to buy a complex banking system that will work with different applications at different times of the day. The system needs to pass various tests by the in-house team and off-shore testing consultants together. The tests will be done in a shared environment with limited resources and overseen by the on-shore development team. The costs for testing are generally classified as...?

Options :

A : Purchase prices

B : Maintenance costs

C : Insurance

D : Acquisition costs

Answer: D

Question 5

A company bought 100 items for $15 each and then another 100 items for $20 each. It sold 60 items and assumed the COSG for each item was $15. It also assumed the value of the remaining 140 items was split into two groups: 40 items worth $15 each and 100 items worth $20 each. This is an example of…?

Options :

A : Last in, First out method

B : Just in Time method

C : Net Present Value

D : First in, First out method

Answer: D