CIPS Ethical Procurement and Supply L3M2 Exam Questions

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Total 90 questions
Question 1

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.



Answer : D

As less has been spent than budgeted, the variance is favourable.


Question 2

Select the two words which explain least well why the procurement of services can be more chal-lenging than the procurement of physical products:



Answer : A, D

The correct answers to the QUESTION NO : are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services.

The other four answers are distinguishing features of services, which result in services being more challenging to buy.


Question 3

'Value engineering is a structured approach to increasing the value obtained from a product by of-fering the same level of XXXXX at a lower cost'.

What is XXXXX?



Answer : A

Functionality.

The idea of value analysis or value engineering is that cost should be taken out of the product, whilst enabling the same performance.


Question 4

The abbreviation 'SOP' stands for:



Answer : B

Standard operating procedure.

A set of step-by-step instructions to direct employees how to perform routine operations (Profex Publishing).


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

The formal appraisal of a current supplier, measured in terms of factors such as quality, timeliness of delivery, etc is known as:



Answer : A

Once a supplier is contracted, monitoring performance is vendor rating.

Prior to a supplier being contracted, attempting to understand what their performance would be like is called 'supplier appraisal'.


Question 7

Individuals, units, teams, groups or organisations that have an influence over procurement, or which are affected by procurement operations, can be called:



Answer : B

The others may be stakeholders, but the answer is 'stakeholders' - those who have a legitimate inter-est in what is going on.


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Total 90 questions