A vehicle company has a partnering relationship with the manufacturer of its engines.

Vendor: CIPS
Product: L4M6
Update on: Dec 16, 2025
Questions: 243

CIPS L4M6 Question Answer

A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?

No, it is an example of a less time-intensive partnership

No, as there is a short-term focus on the relationship

Yes, as this is an example of a target costing approach

Yes, because it includes elements of joint product development