Before you begin ✍️
You are about to practice the questions set for
CIPS – Defining Business Needs L4M2 paper 6.
Please put away any distractions and focus all your efforts on passing.
⏱️Time limit: 1 hour 30 minutes
At the end of your examination practice, you will
📝 View your grade
✅ View the correct answers
NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification.
To begin your exam practice,
wait a few seconds for the start button to appear,
then tap the START button.
"We're rooting for you all the way!" All the best. 😃
1.
Which pricing strategies are commonly utilized by suppliers?
1. Marginal
2. Arbitration
3. Supplier-based
4. Buyer-based
2.
Simon is Verdanix Enterprises procurement manager. He oversees multiple contracts, including several long-term agreements. Each year, he assesses these contracts to ensure alignment with the current market. Is this practice advisable?
3.
Linda serves as the procurement officer at Elmbrook Solutions. She is responsible for overseeing a range of supplier agreements, some of which span multiple years. As part of her role, she evaluates these contracts annually to verify they remain consistent with current market trends. Is this considered a best practice?
4.
Which two elements might weaken a supplier’s ability to influence negotiations within a given market? Select TWO options.
5.
John, a new procurement specialist at Company Z., discovers that low-value items sourced from a flood-prone area pose a supply chain risk. What should Bob do to address this issue?
6.
A technical drawing is an example of:
7.
A company purchases components but has yet to receive an invoice from its supplier, delaying payment until the following month. How will this liability appear in financial statements?
8.
When using performance specifications in a social housing project, what must a buyer ensure?
9.
African consultancy replaced static budgets with one that adjusts monthly based on real-time sales data, extending its forecast period. What type of budget is this?
10.
What is the correct sequence of steps in a problem-solving process?
11.
Typical social considerations throughout a contract lifecycle include which TWO of the following?
12.
How can a company analyze its product components to lower costs without diminishing customer value?
13.
When is it acceptable for a procurement professional to tolerate a risk?
14.
Why should procurement professionals develop business case before seeking approval to purchase capital equipment?
15.
A company is planning to procure an IT system and intends to establish a through-life contract with the supplier to guarantee ongoing support. What is the first step in drafting this specification?
16.
In the Kano model, which type of requirement should be avoided in the design of a product or service?
17.
Which methodology can help a company reduce inefficiencies, such as waste, downtime, and excess materials?
18.
In 2016, ANA Airlines had to cancel several flights after discovering cracks in jet engine turbine blades. What should the airline’s procurement team prioritize to address this issue?
19.
Which technology is considered a key innovation in the financial sector?
20.
A procurement organisation is keen to encourage innovation available within the supply market in the execution of an upcoming significant contract opportunity. A team member suggests that the specification should define the performance indicators so that supplier's solution can be checked against them. Which of the following will enable the organisation to achieve this goal?
21.
A company has identified items that account for 15% of total spend and have minimal impact on final product quality. With supply continuity secured, what is the best purchasing strategy for these items?
22.
Sharon is frustrated because many stakeholders bypass the standard procurement process and make off-contract purchases. She decides to send an aggressive email to all stakeholders. Is this an effective way to resolve the issue?
23.
Which of the following changes might necessitate a modified re-buy?
1.Changing the order time
2.Adjusting the product specifications
3.Revising terms and conditions
4.Transitioning from email orders to ERP systems
24.
Marwood Estates, a property developer based in Qatar, raised its monthly steel budget by 10% but still achieved cost savings despite placing larger orders. Last month, the firm imported 11 tons of steel for 2,160. What is the main cost driver in the steel expenditure?
25.
Company Bax has significant investments in facilities and machinery, requiring mass production to remain profitable. Which industry does it operate in?
26.
What is the main output of regression analysis?
27.
Should procurement teams engage with unqualified suppliers for a straight re-buy?
28.
When analyzing direct and indirect costs for supplier negotiations and budgeting, the procurement manager uses reports from firms like Mintel, Gartner, and Forrester. What type of information source is this?
29.
What process focuses on enhancing the value of a new product or service?
30.
How does a buyer typically execute a straight re-buy?
31.
In market research, what is one key benefit of using primary data instead of relying on secondary data?
32.
Jay is preparing a business case to request funding for a new CRM system. Which justification should he include to persuade senior management?
