CIPS L3M2 Ethical Procurement and Supply Exam Practice Test

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Total 90 questions
Question 1

Accurate specification of requirements along with suitable-chosen quality standards is most likely to influence which of the five Rights?



Answer : A

Quality.

Specification is fundamental to receiving the right quality.

Standards can be seen as a form of specification intended for recurrent use (Lysons)


Question 2

The main difference between value engineering and XXXXX XXXXX is that whereas value engineering is applied to new product design at the pre-manufacturing stage, XXXXX XXXXX is applied to established products that are already being manufactured and sold in the market.



Answer : C

Value analysis.

This is simply a distinction between VA and VE.


Question 3

'A product will not survive commercially unless it satisfies XXXX needs'. Which one of the follow-ing is the most important fit for XXXX?



Answer : A

Business is all about the customer.


Question 4

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.



Answer : D

As less has been spent than budgeted, the variance is favourable.


Question 5

Key Performance Indicators could be said to be:



Answer : B

SMART

Specific, measurable, achievable, realistic, timebound or similar.


Question 6

A single purchase agreement created to cover multiple repeat orders for supplies from a single source, is called a:



Answer : A

Requirements are 'called off' from a single contract.


Question 7

Which one of the following is least likely to be an effective measure of internal customer service?



Answer : A

Supply Management annual awards are external, and while they may be impressive, they are not to be relied upon as a measure of internal customer service.

The other answers offered however, can be effective in this regard.


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Total 90 questions