CIPS A8 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following best describes open book cost auditing?

ARequesting financial reports of a suppliers expenditure on and performance of a contract

BRegular progress meetings during the running time of a contract to discuss finances and contract performance with the supplier

CAnalysing the suppliers balance sheet and profit and loss account to gain knowledge of its finances

DThe supplier providing a detailed breakdown of the time, materials and other resources spent on completing a contract.

Answer : D

Question 2

Which of the following best describes a 'fixed price'?

AA price which is quoted in writing by a supplier as a result of an enquiry from the buyer

BA price which may only be altered by reference to a formula agreed between buyer and seller

CA price that has been paid for an item every time it has been ordered for a period of more than
12 months

DA non-variable price, which cannot be changed unless both buyer and seller agree.

Answer : B

Question 3

In which of the following situations is a purchase order most likely to be regarded as a counter offer?

AThe order is sent to a supplier without there being a preceding quotation from the supplier

BThe order is sent to a supplier following a quotation from the supplier bearing the supplier's contract terms

CThe order is sent to a supplier as a result of the buyer being impressed by the product description in the suppliers catalogue

DThe order is sent to a supplier to call off a consignment of materials from a blanket order.

Answer : C

Question 4

Which of the following is the stipulation of the Sale of Goods Act (1979) regarding 'description'?

AThe buyer must always provide a full description of the goods required on all documentation sent to the seller

BThe seller must always provide a full description of the goods in all documents such as brochures or catalogues

CThe goods supplied must always correspond to their description when there is a sale by description

DThe goods supplied must always correspond to the description provided by the buyer in the request for quotation.

Answer : D

Question 5

Which of the following would normally be regarded as the legal purpose of a written contract?

AIt provides a record of an agreement made at a meeting

BIt ensures that a written record of an agreement is made

CIt ensures that a supplier knows what is required by the buyer

DIt defines the obligations of both buyer and seller

Answer : C

Question 6

In an international contract, if no choice of legal system is specified in the contract, which of the following is the general principle of international trade?

AThat the legal system to be used will be that of the buyer's country

BThat the legal system to be used will be that of the supplier's country

CThat the legal system to be used will be that of a country, not involved with the contract, specified by the international court

DThat the legal system to be used will be that of the country with which the performance of the contract is most closely associated.

Answer : B

Question 7

Which of the following best defines the term 'variable pricing'?

AA price that can, by agreement between buyer and seller, fluctuate over the length of the contract

BA price that is fixed for the length of the contract unless both parties agree to a change

CA price that covers the seller's costs plus a mark-up to provide the seller's profit

DA price that allows discount if the buyer buys more than a stated amount during the contract period.

Answer : D

CIPS Preparing and Managing Contracts A8 Exam Questions