Free Access HBX.CORe.v2026-08-07.q212 Practice Test (Page 11)

Question 46

A manufacturing company purchases a certain component in quantities of 10,000 units per truckload. The company uses 2,000,000 units annually. The firm's supply manager identifies two possible suppliers of the component, both of which meet service and quality requirements.
Supplier A offers the component at $.69 per unit and charges $2000 to ship one truckload. Supplier B offers the component at $.71 per unit and charges $1500 to ship one truckload. Given this situation, which of the following will be MOST useful to the supply manager in deciding between the two suppliers?

A.Landed price

B.Value analysis

C.Economic order quantity

D.Cost/price analysis

Question 47

During a prolonged recession, a hotel chain sees reservations at one of its locations decline by five percent. The chain soon decides to close that location. Why would a small change in capacity utilization have this effect?

A.Fixed costs are too high for the hotel to remain profitable at this decreased quantity.

B.Demand for hotel rooms in this location is extremely elastic.

C.Closing the location will allow the hotel chain to recover some of its sunk costs.

D.The consumers most affected by the recession are generally those with lower willingness to pay.

Question 48

JKL, Inc. outsources its event services for large group training sessions and annual meetings. The contract requires the supplier to report program metrics, including cost savings. The savings method employed compares the hotel's initial bid to the final negotiated price. The first report shows significant hard savings on the average nightly rate for hotel rooms. JKL's category manager would like to claim the hard savings. Which of the following BEST describes why the finance department should deny this request?

A.Unless there is a year-over-year reduction, the savings is cost avoidance.

B.Savings from outsourcing are subject to a higher level of governance.

C.Further data is required from the supplier to sufficiently support the savings.

D.Unless there is a year-over-year reduction, the savings is cost containment.

Question 49

A buyer for ABC, Inc. meets with a sales representative from XYZ Company to discuss the purchase of a product. The sales representative provides documentation to the buyer that the product will meet or exceed the specifications required by ABC. Based on thi information, the buyer places an order with XYZ.
However, upon inspection of the received product, the buyer learns that it does not meet ABC's specifications and cannot be used for the intended purpose. Which of the following is TRUE in this situation?

A.ABC should return the goods for a full refund because the promise made by the seller created an express warranty.

B.ABC's design team should change the specifications to allow the product to be used and avoid further delay.

C.ABC should sell the product to a third party and use the funds to procure items that meet the required specifications.

D.ABC can do nothing, as the salesperson's claim was an opinion and did not create a warranty.

Question 50

Which of the following statements is NOT true regarding Company A? Exhibit:

A.The efficiency in collecting receivables of Company A increased in 2013.

B.The profitability of Company A increased in 2013.

C.The efficiency in using inventory of Company A increased in 2013.

D.The solvency of Company A increased in 2013.

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Question 46

Question 47

Question 48

Question 49

Question 50

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