CIPS A10 Exam Practice Test Instant Access

Question 1

Which of the following is a recognised measure of purchasing performance?

AStock exchange value of the business

BJoint performance measurement

CNet profit before tax

DSales growth analysis

Answer : A

Question 2

Which of the following is a term used to describe a measurement system where a buyer and a supplier both obtain a benefit?

AA joint performance system

BA return on investment system

CAn ABC tabulation system

DAn advanced tender system

Answer : B

Question 3

A joint performance measurement system should benefit both buyer and supplier. Which of the following is a benefit to the buying organisation?

AIt improves both buyer and supplier production process

BIt allows for products to be purchased 'off the shelf '

CIt enables unnecessary costs to be designed out of the system

DIt automatically leads to reduction in overall costs

Answer : A

Question 4

A buyer is concerned about improving the cost of materials received. Which of the following would be considered the best means of assessing current purchasing performance?

AComparisons with industry index numbers

BInflation assessment calculations

CCost/profit volume analysis

DNegotiation with existing suppliers

Answer : A

Question 5

Which of the following is an appropriate method of assessing an individual purchaser's performance?

AA supplier development programme

BAn appraisal scheme

CA supplier rating programme

DA quality circle programme

Answer : C

Question 6

Which of the following best describes 'Investors in People'?

AA scheme to give staff performance bonus

BA scheme to give purchasers a special reward

CAn award given to a business indicating best practice towards employees

DAn award given to a business indicating that ethical purchasing takes place.

Answer : B

Question 7

Which of the following is a valid analytical technique used in stores/warehouses for measuring inventory?

ARatio analysis

BStatistical Process Control

CCritial path analysis

DStock turnover

Answer : B

CIPS Measuring Performance in Purchasing and Supply A10 Exam Practice Test