CIPS A10 Exam Practice Test Instant Access

Question 1

Which of the following is most likely to improve performance by reducing costs?

ACurrency speculation

BIncreasing line counts

CBuying internationally

DConsignment stocks

Answer : A

Question 2

Which of the following recognises the purchasing function adding value to an organisation?

AThe buyers placing more orders

BThe buyer sourcing a lower cost suitable product

CThe department having meetings with more suppliers

DThe buyer placing more orders in bulk

Answer : C

Question 3

Which of the following can be described as 'the achievement of an equivalent financial saving or benefit that is not based on a movement in unit price'?

AReduced value

BResidual value

CAdded value

DAverage value

Answer : B

Question 4

Which of the following is a prime objective of all purchasing functions?

ATo contribute to the production and operations function

BTo operate independently of the sales and marketing functions

CTo contribute to the profitability of the organisation

DTo measure the overall performance of the organisation

Answer : D

Question 5

Which of the following is essential for an effective appraisal process?

AClearly defined rules and regulations for the post

BClearly defined demarcation lines between levels

CClearly defined objectives for each post

DClearly defined salary levels for each post

Answer : A

Question 6

Which of the following measures could be used to verify the effectiveness of stores management?

AValue of credits taken

BValue of credit given

CValue of stock orders placed

DValue of stock damaged

Answer : B

Question 7

Which of the following is a useful indicator that the value of stock held is too high or too low?

AComparing the total value of issues out of store against the same period in the previous year

BComparing the total value of receipts into and issues out of store against the same period in the previous year

CComparing the total value of receipts into store against the same period in the previous year

DComparing the total value of lost or damaged stock against the same period in the previous year.

Answer : B

CIPS Measuring Performance in Purchasing and Supply A10 Exam Practice Test