CIPS L3M2 Ethical Procurement and Supply Exam Practice Test

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Total 90 questions
Question 1

A margin within which a specification can vary slightly -- the outer limits of what is acceptable to the buyer -- can be described as:



Answer : C

The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.


Question 2

The main difference between value engineering and XXXXX XXXXX is that whereas value engineering is applied to new product design at the pre-manufacturing stage, XXXXX XXXXX is applied to established products that are already being manufactured and sold in the market.



Answer : C

Value analysis.

This is simply a distinction between VA and VE.


Question 3

We can talk about the 'make, do or XXXX decision'. XXXX represents:



Answer : A

Make, do or buy decision.

Historically 'make or buy'. Now up dated to take account of services procurement ie 'should we do it ourselves?'


Question 4

An internet-based auction between competing sellers or suppliers in real time, is called a:



Answer : C

Reverse e-auction.

This term is used in your syllabus.


Question 5

Where the buyer's and seller's conditions of contract clash, this is commonly known as 'the battle of the...'



Answer : D

Buyers should work hard to ensure that their terms and conditions apply to the contract between buyer and seller.

They should seek to win 'the battle of the forms'.


Question 6

'Expediting' is:



Answer : D

Expediting - a task, which in an ideal world would not normally need to exist - is seeking to ensure delivery is made in line with contract and / or organisational needs.

It has nothing to do with permission to spend, auditing, or preparing for an expedition.


Question 7

Finding new potential suppliers using the internet might be known as:



Answer : A

E-sourcing.

Try to be clear on the difference between e-sourcing and e-auctions.

Other related e-terms include e-contracting, e-procurement, and possibly more.


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Total 90 questions