Before you begin ✍️
You are about to practice the questions set for
CIPS - Whole Life Asset Management (L4M7) paper *5.
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 of the following are recognized pricing strategies that can be used by the suppliers?
1. Marginal
2. Arbitration
3. Supplier-based
4. Buyer-based
2.
Derek is the procurement manager at Norton Ltd. He manages various contracts, including some long-term supply contracts. He reviews these contracts annually to ensure they are aligned with the current market conditions. Is this a good practice?
3.
Royal Navy is preparing a through-life contract. They put to the contract a term on rectification of operational defects and planning and delivery of Fleet Time Support Periods. Which part of through-life requirement does this term belong to?
4.
Which of the following are most likely to negatively affect the suppliers’ bargaining power in a specific market? Select TWO that apply:
5.
Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's supplies. After analysing, Bob realises that a group of low value products is sourced from a tiny geographical area which is prone to flooding. What would be the best strategy to manage this category of products?
6.
A drawing is an example of…?
7.
A company buys components from its supplier. However, the supplier has not sent the invoice to the buyer and the buyer will not pay until next month. How will that amount of money be shown in the financial statements of the buying organization?
8.
A buyer in Housing Authority is considering using performance specification in upcoming social housing project. What should buyer be aware when using this type of specification?
9.
A consulting firm in London had previously had static budgets. They were set once and locked in for the year. This resulted in departments meeting their budgets early and doing virtually nothing the rest of the accounting period. To address this imbalance, the company tossed out the static budget and developed a new one for each department of the next 18 months. And each month, real sales figures are analyzed against the plan and the budget is adjusted accordingly. Then the company adds another month into the budgeting plan. What type of budget this company is using?
10.
Which of the following is a correct order of problem solving process?
11.
Which of the following are typical social considerations throughout the contract life cycle? Select the TWO that apply.
12.
A company is analysing its existing product's components and aims at reducing costs without damaging customer value proposition. They want to check which components are critical and which are unnecessary. Which of the following should be adopted by the company?
13.
When should procurement professional tolerate a risk?
14.
Why should procurement professionals develop business case before seeking approval to purchase capital equipment?
15.
A company is planning the procurement of an IT system and wants to agree a through-life contract with the supplier to ensure ongoing system support. The first step in producing that specification should be to:
16.
In Kano model, which of the following types of requirement should be excluded from the product or service?
17.
Which of the following methods will enable a company to eliminate waste, lost time and lost material from its processes?
18.
In 2016, ANA Airlines had to cancel some of its flight. The airline said it had discovered the cracks to the jet engine turbine blades. What should ANA procurement team do next to solve this problem?
19.
Which of the following technology is likely to be an innovation in 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 a lists of items that make up 15% of total spend. These items also do not largely impact on quality of final product. The supply continuity is secured. Which of the following will be the most appropriate managing approach to purchase these items?
22.
Stacey is facing a major problem at work. Many stakeholders do not follow the standard procurement process and buy off-contract instead. Stacey loses her temper and decides to write an aggressive email to all relevant stakeholders. Is this a right approach to solve the problem?
23.
What kind of change may require a modified re-buy?
1. Change of order time
2. Change of specification
3. Change of terms and condition
4. Switch from email orders to ERP orders
24.
Aldar Properties, a UAE-based property developer, had a budget for steel that was 10% higher this month than the previous month. However, it managed to save money on steel despite having more orders. It imported 11 tons of steel for $1,992.1 this month, compared to 10 tons for $2,160 last month. What is the main cost driver of steel budget?
25.
ABC Ltd has enormous investment in facilities and machinery. It also employs skilled workforce. To be profitable, the company has to produce at massive quantity. Which sector does ABC Ltd belong to?
26.
What is the output of regression analysis?
27.
Should procurement engage with unqualified suppliers when they undertake a straight-rebuy?
28.
When analyzing direct and indirect costs of potential suppliers for negotiations and planning purchasing budget, the procurement manager collects reports from specialist organisations like Mintel, Gartner and Forrester. Which kind of information source is used by the procurement manager?
29.
Which of the following is the process for improving the value of a new product or service?
30.
How can a buyer perform a straight re-buy?
31.
What is one advantage of primary data over secondary data for market analysis?
32.
Jayson is preparing a business case for purchasing new CRM system. He needs to secure the budget allocation from the senior management. Which of the following justification should Jayson includes in his business case to convince the senior management?
Please proceed to view your grade. Fingers crossed🤗
