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Administration and Logistics Flashcards

7 cards from real CBST practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A budget report shows planned spending of $12,400 and actual spending of $13,755. What is the budget variance, and is it favorable or unfavorable?

    Answer: $1,355 unfavorable

    $13,755 − $12,400 = $1,355 over budget, which is unfavorable because actual costs exceeded planned costs.

  2. Which inventory concept refers to the minimum stock level maintained to protect against stockouts during unexpected demand spikes or supply delays?

    Answer: Safety stock

    Safety stock is a buffer inventory maintained to protect against stockouts caused by demand surges or delayed deliveries.

  3. Department A spent $96,000 out of total company spending of $480,000. What percentage of total spending does Department A represent?

    Answer: 20%

    $96,000 ÷ $480,000 = 0.20, which equals 20%.

  4. A logistics coordinator compares two carriers for a 340 lb shipment. Carrier X charges $2.10/lb. Carrier Y charges a flat $550 plus $0.80/lb. Which carrier costs less, and by how much?

    Answer: Carrier X by $36

    Carrier X: 340 × $2.10 = $714; Carrier Y: $550 + (340 × $0.80) = $550 + $272 = $822; Carrier X is less expensive by $822 − $714 = $108... Carrier X: $714, Carrier Y: $822; difference = $108.

  5. What is the primary purpose of a receiving report in a logistics operation?

    Answer: To document what was actually received and confirm it matches the purchase order

    A receiving report verifies that goods delivered match the purchase order in quantity and condition, forming the basis for payment approval.

  6. Company policy requires records to be kept for 7 years. Records created in March 2019 may be destroyed no earlier than:

    Answer: March 2026

    March 2019 + 7 years = March 2026 is the earliest the records may be destroyed.

  7. Which communication method is MOST appropriate for notifying multiple departments simultaneously about a change in internal procurement procedures?

    Answer: A written memo or email distributed to all relevant department heads

    A written memo or email ensures all departments receive consistent information simultaneously and creates a documented record of the notification.