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CIPS L4M2 Exam Syllabus Topics:
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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/def%C4%B1ning-business-need
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CIPS Defining Business Needs Sample Questions:
A procurement manager is writing a conformance specification for a non-core component. She thinks that if the requirements in specification are higher than ISO standards, her company can achieve greater cost- savings. Is the procurement manager's opinion correct?
- A. Yes, because optimising the specification is the only method to achieve value for money
- B. No, because higher requirements in specification, the greater bargaining power of buying organisation
- C. Yes, because higher requirements will help buying organisation find the best supplier
- D. No, because higher specification may incur additional costs for the buyer
Correct Answer: D 🗳️
Explanation: Only visible for TestkingPDF members. You can sign-up / login (it's free).
What criteria can be applied in the production of a business case?
- A. Suggestions, feedback, and forecast
- B. Plans, delivery, and design
- C. Costs, benefits, and options
- D. Questions, price, and evaluation
Correct Answer: C 🗳️
Explanation: Only visible for TestkingPDF members. You can sign-up / login (it's free).
The main benefit of using standards in a specification is ...
- A. that standards provide a clear guide with no ambiguity or uncertainty
- B. it will ensure the latest technology standards are kept up to date
- C. that British standards are aligned with all other international standards
- D. that standards allow the supplier to give the buyer a bespoke product
Correct Answer: A 🗳️
A market has a considerable number of buyers and suppliers. Analysis of the market reveals that loyalty from buyers is relatively low and switching to alternative providers is commonplace. Which of the following market characteristics is supporting this type of buyer behaviour?
- A. The availability of substitute products
- B. Supplier bargaining strength
- C. Barriers to market entry
- D. Increasing use of technology
Correct Answer: A 🗳️
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Which of the following always impact negatively on a company ' s cash flow? Select TWO that ap-ply
- A. More inventory
- B. Depreciation of fixed asset
- C. Customers agree to pay immediately
- D. Increasing revenue
- E. Supplier shortens their payment period
Correct Answer: A,E 🗳️
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Good L4M2 study guides.