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CIPS Level 4 Diploma in Procurement and Supply L4M2 Updated Exam

Page: 8 / 18
Total 237 questions

Defining Business Needs Questions and Answers

Question 29

Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing a piece of laboratory equipment. Was this the correct course of action?

Options:

A.

Yes, because this focuses only on the price of the equipment

B.

Yes, because this considers all associated costs

C.

No, because this considers the costs of quality

D.

No, because this covers various transactional costs

Question 30

A manufacturing organisation has initiated a project focusing on costs, with a view to making significant savings. A procurement manager is leading the project. The initial data sources have focused on the cost of raw materials. Which of the following describes this cost?

Options:

A.

Direct, variable costs

B.

Indirect, variable costs

C.

Direct, fixed costs

D.

Indirect, fixed costs

Question 31

When procuring an IT equipment, at which stage the buyer’s expectations are translated into a technical specification?

Options:

A.

Installation

B.

Design

C.

In-service support

D.

Customer support

Question 32

ESTION NO: 9

The buyer's database is regarded as a primary data source. Which of the following is also a source of primary data?

Options:

A.

Price lists collected from suppliers' representatives at trade fairs

B.

Price listings on comparison websites and market exchanges

C.

Published economic indices such as the retail price index (RPI)

D.

Financial and trade press, including journals published by professional bodies

Page: 8 / 18
Total 237 questions