CIPS A7 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following best describes a strategy of 'related diversification'?

AMarketing an existing product in an existing market

BMarketing a new product in an existing market

CMarketing a new product in a new market

DMarketing an existing product in a new market.

Answer : C

Question 2

From a supplier's point of view, which of the following might best represent a buyer with very high demands relating to quality but with only a modest amount to spend?

AA buyer to be developed

BA buyer to be exploited

CA buyer to become a partner

DA buyer to be regarded as a nuisance.

Answer : D

Question 3

Which of the following defines 'value' in the context of value analysis?

AValue = Function/Cost

BValue = Feature added to a product to secure a premium price

CValue = Selling price/Cost

DValue = Cost/Function.

Answer : B

Question 4

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 5

Which of the following is supplier evaluation mainly concerned with?

AEnsuring that deliveries are made on time

BEnsuring compliance with the terms and conditions of contract

CEnsuring that an existing supplier is rated on technical and commercial criteria

DEnsuring that risk is reduced in a potential long-term supply relationship.

Answer : A

Question 6

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 7

Which of the following could be considered as a 'value statement' for an organization?

AContinuous improvement is essential to our success. We must strive for excellence in everything we do; in products, in their safety and value, and in our competitiveness and our profitability

BOur people are the source of our strength. They provide our corporate intelligence and determine our reputation and vitality

CTo continually improve our products and services to meet our customers' needs, allowing us to prosper as a business and to provide a reasonable return for our shareholders, the owners of our business.

Answer : C

CIPS An Introduction to Purchasing Strategy A7 Exam Questions