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ISM Supply Management Core Exam Sample Questions (Q179-Q184):

NEW QUESTION # 179
A company had sales revenue of $500,000 for 2013. During 2013, the company incurred operating expenses of $40,000 and interest expenses of $60,000. The income before taxes was $220,000. What was Cost of Goods Sold (COGS) for the year 2013?

A. $180,000
B. $200,000
C. $220,000
D. $240,000

Answer: A

NEW QUESTION # 180
Which of the following options is an example of owner's equity?

A. Long-term equity investment in another company
B. Obligation to pay common stock dividends that have already been declared
C. Additional paid-in capital
D. Cash raised by issuing bonds

Answer: C

NEW QUESTION # 181
Which of the following graphs shows a negative relationship between the two variables?
A)

A. Option A
B. Option D
C. Option C
D. Option B

Answer: A

NEW QUESTION # 182
What denominator amounts does an analyst use to calculate the common size balance sheet and income statement?

A. Total assets and operating income, respectively
B. Total assets and sales, respectively
C. Owner's equity and sales, respectively
D. Current assets and net income, respectively

Answer: B

NEW QUESTION # 183
A supply manager submits requests for additional personnel and equipment, which are approved. However, the organization's training budget is cut, giving less opportunity to train new employees. The supply manager is concerned that this will adversely affect the department's ability to build expertise. Given this situation, which of the following is the MOST effective action for the supply manager to take?

A. Present justification showing how training supports cost reduction goals
B. Fill fewer positions than approved and re-direct savings to training
C. Utilize available training funds early in the year to gain maximum impact
D. Seek highly-qualified applicants who will require less training

Answer: A

NEW QUESTION # 184
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