CPIM Practice Exam

Which of the following is an example of an output of a work center?

1. Inventory stored

2. Total hours worked

3. Products shipped

4. Sales forecast

The correct answer is: Products shipped

In a work center, the primary function is to produce goods or services, making the output a key area of focus. An output in this context refers to the tangible products or services completed as a result of the work performed in that center. When considering "products shipped," it represents the actual goods that have been completed and are ready to be sent to customers, reflecting the effectiveness and efficiency of the work center's operations. This aligns well with the nature of outputs, which are ultimately the end results of the production process. Inventory stored, while relevant in the management of materials and products, indicates stock levels rather than the direct output of a work center. Total hours worked measures labor input rather than the conversion of that labor into finished products. A sales forecast is predictive in nature and pertains to future expectations of sales rather than an output generated by a work center. Therefore, focusing on what a work center produces leads us to recognize "products shipped" as the most appropriate example of an output.