CIPS Contract Administration L3M3 Exam Questions

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Total 90 questions
Question 1

Under a XXXX contract, the buyer does commit to purchase a given quantity over a given period of time, but the precise number of orders and their quantities is unknown at the start of the period. What expression has been replaced by XXXX?



Answer : A

The fact that the time period and the total quantity is known means it is a 'call-off' contract. The volumes of product are 'called off' from the contract as required by the buying organisation.

Make sure you understand the difference between a call-off contract and a framework arrangement.

Under a framework arrangement, there is no obligation on the part of the buyer to use the goods / services specified.


Question 2

Qualitative research / data can accurately be described as XXX rather than 'counting'. What is XXX?



Answer : B

Probing.

Qualitative research enables a researcher to develop themes of interest, in more depth than simpler quantitative research.


Question 3

A justification of an action (expenditure) that is to be taken by an organisation.



Answer : C

The business case will justify the expenditure.

Of the other answers offered, the only one which needs explanation presumably is 'cost analysis'. This needs to be distinguished from 'price analysis'.


Question 4

The letters 'ESE' stand for:



Answer : D

Early supplier engagement - one of the assessment criteria for this course (3.1)


Question 5

Contracts published by third party experts such as trade associations or professional bodies, widely regarded as favouring neither buyer nor seller, are called:



Answer : B

These are 'model form' contracts. Industry standard templates eg NEC ('New Engineering Con-tract'); or FIDIC model form contracts. You will find some examples produced by CIPS on the CIPS website eg for IT procurements.


Question 6

Which of the following are external factors in supplier decision-making? Choose two.



Answer : B, C

Market conditions, determining demand and supply, and customer perceptions of value are external factors. One could argue that customer perceptions of value can be altered by the selling company, but in the short-term this is clearly external.


Question 7

Johnson, Scholes and Whittington suggested three key criteria for options which can be used in the evaluation of a business case. Which word was not one of these three key criteria?



Answer : A

'Is it acceptable, feasible and suitable?' are the tests.


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Total 90 questions