CIPS L4M2 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following are primary sources of market data for costs and prices? Select TWO that apply.

APublished economic indices

BIndustry press

CSupplier marketing communications

DPrice comparison website

ETrade fairs

Answer : C, E

Question 2

Which of the following is the disadvantage of embedding standards in a specification?

AStandards do not improving buyer's bargaining power

BEmbedding standards into specification requires enormous time and effort

CStandards are too static and discourage innovation

DStandards are too flexible and may cause ambiguity in the specification

Answer : C

Explanation

'Standards are often produced by professional bodies (maybe national or international bodies). Standards tend to be stable for a period of time, therefore, they are likely to be static and discourage innovation.'

LO 3, AC 3.1

Question 3

The first step in developing a business case, according to the procurement cycle is ...

Aidentify the need

Bcontact the stakeholders

Csource the market

Dappraise suppliers

Answer : A

Question 4

A construction company requires a specification that details the exact composition of the concrete mix and the exact methods of construction required for its use. Which specification should it adopt?

ADesign specification

BPerformance specification

CErgonomic specification

DFunctional specification

Answer : A

Question 5

Which of the following is a potential driver of change in the manufacturing industry to help reduce costs

and increase efficiency?

AE-commerce

BRobotics

COmnichannel

DVisualisation

Answer : B

Question 6

When making a business case, the proposal has to consider financial costs, non-financial costs and opportunity costs. What is an opportunity cost?

AOpportunistic expenditure incurred in speculative Activities such s auctions

BOpportunity foregone by choosing to spend on one option instead of the other

CThe cost of lost opportunities because of operational disruption or reputational damage

DThe expenditure incurred by investing m costly and opportunistic ventures such as mergers

Answer : B

Question 7

A large sports organisation requires some additional racing equipment to be built. It should match exactly the pre-determined technical specifications and requires exact compatibility. Which of the following specifications would be most appropriate?

AConformance specification

BPerformance specification

COutcome specification

DProduct specification

Answer : A

CIPS Defining Business Needs L4M2 Exam Questions