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100% Pass ISM - Authoritative Latest CORe Exam Format

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ISM Supply Management Core Exam Sample Questions (Q169-Q174):

NEW QUESTION # 169
During its first annual business review, a supplier requests an increase in pricing. The supplier's survey results show a rating of 2.9 out of 5 possible points (with 3.0 being acceptable). Market indices indicate that the supplier's industry has experienced no price increase. In this situation, which of the following is the BEST course of action for the buyer to take?

A. Reestablish service level agreement expectations and deny any increase at this time
B. Review the survey results with the supplier asking how it plans to address the concerns, and discuss the economic factors supporting the price increase
C. Ask the supplier to respond to the survey results item by item, to determine the efficacy of the request
D. Inform the supplier that the market indices do not support an increase, and issue a 30-day cure letter warning of contract breach based on the survey results

Answer: B

NEW QUESTION # 170
A company reported income before taxes of $800,000 for Year 2. The company did not have temporary taxable differences at the end of Year 1 but reported a net deferred tax asset of $6,000 for Year 2. The effective income tax rate is 30 percent. What amount should the company pay as income tax for Year 2?

A. $246,000
B. $240,000
C. $241,800
D. $234,000

Answer: A

NEW QUESTION # 171
A corporation acquires a startup company, with the objective of branching out into a new product line. The firm's procurement team needs to enlarge the supply base in order to meet the new production requirements.
Which of the following is the BEST way for the team to ensure suppliers are aligned with organizational goals?

A. Compare the firm's vision and mission to potential suppliers' capabilities
B. Conduct market research to Identify characteristics needed by potential suppliers
C. Contact current suppliers to determine their maximum production capacity at the necessary quality levels
D. Facilitate meetings between internal stakeholders and external stakeholders

Answer: A

Explanation:
To ensure suppliers are aligned with the organizational goals, it is essential to compare the suppliers' capabilities and vision with the firm's vision and mission.
* Contact current suppliers to determine their maximum production capacity at the necessary
* quality levels: Useful, but does not ensure alignment with organizational goals.
* Conduct market research to identify characteristics needed by potential suppliers: Important, but it should be followed by alignment checks.
* Facilitate meetings between internal stakeholders and external stakeholders: Valuable for communication but does not guarantee alignment.
* Compare the firm's vision and mission to potential suppliers' capabilities: This ensures that the suppliers can support and align with the strategic objectives of the firm, ensuring long-term compatibility and success.
Therefore, the best way to ensure suppliers are aligned with organizational goals is to compare the firm's vision and mission to potential suppliers' capabilities.
References:
* Supplier relationship management best practices.
* Strategic alignment in procurement literature.

NEW QUESTION # 172
During negotiations with a supply manager from FGH Inc., a supplier states that if FGH buys the 200 gigabyte version of its software package at a price of $700, the supplier will include a never-before-sold malware license valued at $147. FGH needs both the malware and the software package. If the supply manager agrees to the offer, FGH may claim a

A. cost reduction
B. cost savings
C. cost variance
D. cost avoidance

Answer: D

NEW QUESTION # 173
A researcher wants to predict an individual's starting monthly salary based on the number of years of education the individual has received.

Based on the Excel output below, what is the predicted starting monthly salary for a person with 17 years of education?

A. $6,032.45
B. $8,194.69
C. $1,438.71
D. $3,870.21

Answer: D

NEW QUESTION # 174
......

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