APICS Exam CSCP Topic 2 Question 66 Discussion

Actual exam question for APICS's CSCP exam

Question #: 66
Topic #: 2

[All CSCP Questions]

Moving from engineer-to-order (ETO) to assembled-to-order (ATO) usually increases which of the following costs per unit?

ATransportation

BInventory

CManufacturing

DProcurement

Show Suggested Answer

Suggested Answer: B

by Roxane at Mar 02, 2023, 07:54 AM

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Mitsue

2 days ago

I think the answer is B) Inventory. Transitioning from ETO to ATO typically means holding more components in stock, which increases inventory costs per unit.

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Paola

11 days ago

But wouldn't transportation costs also increase with ATO due to more frequent shipments?

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Kanisha

12 days ago

I agree with Dan, because with ATO, we need to hold more finished goods in stock.

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Dan

13 days ago

I think it's B) Inventory.

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