ISM Exam CPSM1 Topic 1 Question 106 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 106
Topic #: 1

[All CPSM1 Questions]

Which of the following is NOT the component used to calculate the inventoryholding costs?

AReleased rates

BInvested funds

CShrinkage

DObsolescence

Show Suggested Answer

Suggested Answer: D

by Jerrod at Jan 26, 2025, 02:43 PM

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Lenny

23 days ago

I bet the person who wrote this question was feeling a bit punchy that day. 'Released rates'? Really?

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Daniel

1 months ago

A) Released rates? What kind of answer choice is that? Sounds like a typo to me.

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Tracey

21 days ago

D) Obsolescence

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Dulce

1 months ago

C) Shrinkage

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Lai

1 months ago

B) Invested funds

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Lashawn

1 months ago

D) Obsolescence is definitely a component of inventory holding costs. That's a no-brainer.

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Rene

2 months ago

Hmm, I'm pretty sure C) Shrinkage is one of the factors that contribute to inventory holding costs. That's a tricky one.

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Laquanda

29 days ago

I agree, I believe D) Obsolescence is also not a component in calculating inventory holding costs.

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Antonio

1 months ago

I think A) Released rates is not used to calculate inventory holding costs.

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An

2 months ago

Actually, I think it's D) Obsolescence because it's not directly related to inventory holding costs.

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Cortney

2 months ago

I think B) Invested funds is not a component of inventory holding costs. That's more related to the cost of capital.

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Olen

15 days ago

Released rates, Invested funds, and Obsolescence are all related to inventory holding costs.

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Felix

20 days ago

D) Obsolescence seems like the odd one out when it comes to inventory holding costs.

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Delisa

22 days ago

I think it's C) Shrinkage that is not used to calculate inventory holding costs.

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Franchesca

1 months ago

I agree, B) Invested funds is not a component of inventory holding costs.

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Elena

2 months ago

I disagree, I believe the answer is C) Shrinkage.

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An

2 months ago

I think the answer is A) Released rates.

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