APICS CSCP Exam - Topic 2 Question 93 Discussion

Actual exam question for APICS's CSCP exam

Question #: 93
Topic #: 2

[All CSCP Questions]

A juice manufacturer wants to determine the time required to convert a dollar spent on materials into a dollar received in sales. Which of the following metrics would be most appropriate to make this determination?

AActivity-based costing

BInventory carrying cost

CCash-to-cash cycle time

DAverage financial turnover

Show Suggested Answer

Suggested Answer: D

The practice of supply chain members acting in close collaboration while retaining independent ownership is known as virtual integration. This term was introduced by Michael Dell in the 1990s to describe processes resulting from combining traditional supply chain vertical integration with the characteristics of the virtual organization1. Virtual integration allows supply chain partners to share information, coordinate activities, and leverage each other's capabilities, without having to merge or acquire each other. This can lead to improved efficiency, responsiveness, and innovation in the supply chain23. Vertical integration, on the other hand, is a business strategy where the business itself controls the supply chain and multiple stages of its production process, thus eliminating or reducing third-party vendor dependencies4. Forward integration and horizontal integration are types of vertical integration, where the business expands its control over the downstream or the same level of the supply chain, respectively4.

by Andrew at Jul 15, 2024, 05:26 PM

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Glendora

3 months ago

Inventory carrying cost doesn't really fit this question.

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Cherry

3 months ago

Activity-based costing could be useful too, but not for this.

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Nichelle

3 months ago

Wait, are we sure that's the best metric?

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Apolonia

4 months ago

Definitely agree, it shows the actual cash flow.

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Honey

4 months ago

I think cash-to-cash cycle time is the way to go!

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Sherill

4 months ago

Inventory carrying cost seems relevant too, but I don't think it directly answers the question about the time to convert a dollar spent into sales.

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Tequila

4 months ago

I feel like we practiced a question similar to this, and cash-to-cash cycle time was highlighted as important for measuring efficiency in converting materials to sales.

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James

4 months ago

I'm not entirely sure, but I remember something about activity-based costing being useful for understanding costs better.

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Bev

5 months ago

I think the cash-to-cash cycle time might be the right choice since it measures how long it takes to convert investments into cash flow.

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Arlene

5 months ago

I'm pretty confident that cash-to-cash cycle time is the right answer here. It directly measures the time it takes for the materials to be converted into sales revenue, which is exactly what the question is asking for.

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Ronald

5 months ago

Okay, I think the key here is to focus on a metric that measures the time it takes for the materials to be converted into sales. Based on that, I'd say cash-to-cash cycle time is the best option.

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Hyman

5 months ago

Hmm, I'm a bit confused on this one. I'm not sure which metric would be the most appropriate to determine that conversion time. I'll have to review my notes and try to figure it out.

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Iraida

5 months ago

This seems like a tricky one. I'll need to think through the different metrics and how they relate to the time it takes to convert materials to sales.

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Deandrea

5 months ago

Hmm, this question seems tricky. I'll need to carefully read through the details and think about the key requirements - maintaining session persistence and uptime during an LTM failover.

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Solange

5 months ago

I'm a bit confused on the difference between coercion and manipulation. Can those really be considered valid change management options?

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Ronny

5 months ago

This seems like a tricky one. I'll need to think through the NHRP registration process and IPsec tunnel troubleshooting steps.

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Leigha

10 months ago

Ha! I was going to say D) Average financial turnover, but that's just silly. How is that supposed to tell you the time it takes to convert materials to sales? Clearly, C) is the way to go.

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Alishia

8 months ago

User 4: Activity-based costing doesn't seem relevant either. C) is the best choice.

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Bernadine

8 months ago

User 3: Yeah, D) Average financial turnover doesn't really tell you that.

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Vesta

8 months ago

User 2: I agree, it measures the time it takes to convert materials into sales.

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Catalina

9 months ago

User 1: I think C) Cash-to-cash cycle time is the most appropriate metric for that.

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Verdell

10 months ago

Yeah, I agree. It directly measures the time it takes to convert materials into sales.

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Virgie

10 months ago

I think C) Cash-to-cash cycle time makes the most sense.

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Vashti

10 months ago

I was torn between A) Activity-based costing and C) Cash-to-cash cycle time, but I agree, C) is the most appropriate metric for this scenario. It's all about timing the cash flow.

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Abel

10 months ago

Hmm, I was considering B) Inventory carrying cost, but you're right, the question is specifically asking about the time to convert materials to sales, so C) is the better choice.

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Lezlie

10 months ago

I think the correct answer is C) Cash-to-cash cycle time. It measures the time it takes to convert materials into cash from sales.

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Michel

11 months ago

I'm not sure, but I think D) Average financial turnover could also be a relevant metric to consider in this case.

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Janae

11 months ago

I agree with Leslie. Cash-to-cash cycle time measures the time it takes for a dollar spent on materials to be converted into a dollar received in sales.

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Leslie

11 months ago

I think the most appropriate metric would be C) Cash-to-cash cycle time.

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