CIPS A7 Exam Practice Test Instant Access

Question 1

Which of the following best defines the term core competence?

ALearning ways of doing things well enough to stay in business

BLearning ways of doing things mostly better than your competitors

CLearning ways of doing things that keep your customers from complaining

DLearning ways of doing things so well that they are difficult for competitors to copy.

Answer : C

Question 2

Which of the following statements best defines value chain analysis?

AThe assessment of the internal and external linkages between the activities which are important to the organization

BAnalyzing the value that may be added through outsourcing a non-core activity of an organization

CAssessing the contribution that could be made to an organization by tiering suppliers

DAnalyzing the effects of forward or backward integration in a supply chain

Answer : C

Question 3

Which of the following best describes the technique Pareto analysis?

AThe law of diminishing marginal returns

BThe law of the trivial few but important many

CThe law of unintended consequences

DThe law of the important few but the trivial many

Answer : C

Question 4

With which of the following is supplier appraisal mainly concerned?

ASecuring the lowest possible cost for purchases

BEnsuring that deliveries are made on time

CReducing exposure to risk for the buying organization

DMeasuring the suppliers performance over time

Answer : D

Question 5

Which of the following is likely to be regarded as a support function in an organization?

ADistribution

BProduction

CFinance

DSales

Answer : B

Question 6

Which of the following is regarded as a 'prevention cost' in relation to quality control.

AInspection staff and equipment

BWarranty claims

CLoss of customers

DStaff education and training.

Answer : C

Question 7

When conducting a supplier appraisal on a potential supplier of a strategic item, which of the following gives the best indication as to the continuity of supply?

AFinancial profitability

BFinancial liquidity

CTechnical and commercial innovation

DPersuasive selling techniques.

Answer : B

CIPS A7 An Introduction to Purchasing Strategy Exam Practice Test