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CIPS L4M2 - Defining Business Needs

Page: 3 / 8
Total 237 questions

Which of the following standards specifies requirements for a quality management system?

A.

ISO 27001

B.

ISO 9001:2015

C.

ISO 22000:2018

D.

ISO 14001:2015

When analyzing direct and indirect costs of potential suppliers for negotiations and planning pur-chasing 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?

A.

Company annual report

B.

Technical data

C.

Market data

D.

RFI

Ymira is asked to develop the specification for water purifier which will be used at the company headquarter. She believes that the specification can be drafted based on the information available on the Internet, such as blog posts, comparison websites, how-to websites, life hacks, etc. Which of the following traits will make the information more useful?

A.

Trustworthy sources

B.

Objectivity

C.

Subjectivity

D.

Written by inexperienced author

E.

Promotional information

Which of the following statements describes a correct example of an indirect cost?

A.

The wages of an automotive electrician responsible for testing vehicle lights during a night shift at a car assembly plant

B.

The cost of alloy rims fitted on new cars during the night shift at a car assembly plant

C.

The salary of the manager in charge of the night shift in the car assembly plant

D.

The cost of paint used in the manufacture of new cars during the night shift at a car assembly plant

XYZ Ltd is the largest consumer of brass in the country. It consumes 48% of all brass manufactured, while the second-largest consumes less than 10% of brass manufactured. Which force or power does XYZ Ltd possess?

A.

Market rivalry force

B.

Threat of substitute force

C.

Buyer bargaining power

D.

Supplier bargaining power

A "modified re-buy" means ...

A.

The existing specifications should be reviewed but not the supply market, as this type of purchase is complex

B.

The specification should not be considered for future treatment as a stock item because of the modification

C.

Both the specification and the market should be reviewed to manage the new circumstances

D.

The existing supplier should be asked to supply the requirement because it is a modified re-buy of the same item

Which of the following factors would mean a buyer had high bargaining power in a competitive market? Select TWO that apply.

A.

Many substitute products are available

B.

Buyers are procuring a low volume of products

C.

High switching costs for the buyer

D.

Buyers are demanding large volumes

E.

Products are highly differentiated

Procurement provides the following information to a business case ...

A.

Estimated costs of bought-in goods

B.

Engineering specifications

C.

Service level requirements

D.

Internal recruitment requirements

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.

Supplier bargaining strength

B.

Barriers to market entry

C.

Increasing use of technology

D.

The availability of substitute products

Why should procurement professionals develop business case before seeking approval to purchase capital equipment?

A.

Using business case will prevent new entrants from entering the supply market

B.

A business case can be used as a replacement of purchase order

C.

Business case is a tool that eliminates all risks associated with the project

D.

Devising business case may prompt the procurement to consider different options