(2024) PASS L3M2 exam with CIPS L3M2 Real Exam Questions
Real exam questions are provided for CIPS Level 3 Advanced Certificate in Procurement and Supply Operations tests, which can make sure you 100% pass
NEW QUESTION # 16
Where the buyer's and seller's conditions of contract clash, this is commonly known as 'the battle of the...'
- A. Bulge
- B. Terms
- C. Forms
- D. Papers
- E. Firms
- F. Titans
Answer: C
Explanation:
Buyers should work hard to ensure that their terms and conditions apply to the contract between buyer and seller.
They should seek to win 'the battle of the forms'.
NEW QUESTION # 17
Van Weele wrote that 'quality is the degree in which XXXX requirements are met. We speak of a quality product or quality service when supplier and XXXX agree on requirements and those re-quirements are met'.
- A. Customer
- B. Designer
- C. Manufacturer
- D. Specifier
- E. Replace XXXX.
Answer: A
Explanation:
Quality, like most things in business, is ultimately about the customer.
NEW QUESTION # 18
'Efficiency is measured in terms of a quantity of ...'
- A. Input per unit of output resource
- B. Resource per unit of input
- C. Output per unit of input resource
- D. Throughput
Answer: A
Explanation:
Output per unit of input resource.
Efficiency is, in a sense, seeking to get as much out of a system, while putting in as little as possible.
NEW QUESTION # 19
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.
- A. None of the above?
- B. Is the variance:
- C. Adverse?
- D. Favourable?
Answer: D
Explanation:
As less has been spent than budgeted, the variance is favourable.
NEW QUESTION # 20
The time between recognition / origin of the need; through to usage or consumption is described as:
- A. User's lead time
- B. True / total lead time
- C. Maker's lead time
- D. Seller's lead time
- E. Procurement lead time
Answer: B
Explanation:
There are different views of 'lead time'; in part depending on where you are standing. The question refers to total lead time, sometimes referred to as 'true' lead time.
The other lead times all exist, in the eyes of the various parties to any particular transaction.
One should note that the internal lead time (ie within the buying organisation) is often much longer than the external lead time. The idea that 'procurement' or suppliers take a long time to process a re-quirement can be illusory.
NEW QUESTION # 21
'From an accounting perspective, added value is total XXXXXX minus total costs of all activities'.
Which word is missing?
- A. Revenue
- B. Expenditure
- C. Costs
- D. Savings
Answer: A
Explanation:
Revenue.
Added value is really measured through the customer's eyes. I have a choice of six coffee shops from which to buy my morning coffee. One has an attractive mix of cleanliness, tasty coffee, effi-cient and friendly service - more than the others. This appealing all-round mix 'adds value' as far as I am concerned and I give it daily repeat business, visiting the others only occasionally. That added value offering generates the repeat business, and helps make the coffee shop more profitable.
NEW QUESTION # 22
Lifetime costs are also known as (choose two):
- A. Leased costs
- B. Total cost of ownership
- C. Recommended purchase price
- D. Whole life costing
Answer: B,D
Explanation:
Lifetime costing, TCO and whole life costing are essentially the same concept - looking at buying based on total costs over the useful life of an asset, not just the purchase price. Although this con-cept seems obvious once you know it, very many people, including senior managers as well as politi-cians, seem to be unfamiliar with the notion.
NEW QUESTION # 23
Which of the following is not a concept related to quality management?
- A. FMEA
- B. SPQR
- C. SPC
- D. TQM
Answer: B
Explanation:
SPQR is a symbol of the Roman Empire, not a quality management concept.
Failure Mode and Effects Analysis, Total Quality Management and Statistical Process Control are all concepts which relate to quality management.
NEW QUESTION # 24
Regarding quality management, how many defects?
- A. Three
- B. One
- C. Two
- D. Zero
Answer: D
Explanation:
Zero defects - a quality concept, recognising the significant cost of re-work - remedying problems created earlier in the process. It is therefore desirable to strive for 'zero defects', thus avoiding error correction, re-work, etc. An important idea within JIT, Lean, etc.
NEW QUESTION # 25
A specification which focuses on the outputs of a requirement is called:
- A. Non-conformance
- B. Non-performance
- C. Conformance
- D. Performance
Answer: D
Explanation:
A performance specification concentrates on the outputs of whatever it is you're buying.
NEW QUESTION # 26
Use of competition is most obviously going to influence which of the following 'rights'?
- A. Time
- B. Revenue
- C. Price
- D. Place
Answer: C
Explanation:
All aspects of an acquisition may be impacted by the use of competition - normally favourably - but the one we are most likely to see immediate impact on is 'price'.
NEW QUESTION # 27
'A product will not survive commercially unless it satisfies XXXX needs'. Which one of the follow-ing is the most important fit for XXXX?
- A. Customer
- B. Sales and marketing
- C. Manufacturer
- D. Government agency
Answer: A
Explanation:
Business is all about the customer.
NEW QUESTION # 28
The act of secretly and illegally stealing funds which have been placed in the individual's trust, or money belonging to a person's employer:
- A. Bribery
- B. Fraud
- C. Embezzlement
- D. Extortion
Answer: C
Explanation:
This is a definition of embezzlement.
The other terms shown as possible answers are also part of the syllabus for this subject.
NEW QUESTION # 29
The supplier appraisal model attributed to Dawn Dadds, is, as shorthand:
- A. NOSE2NOSE
- B. MAN2MAN
- C. HEAD2HEAD
- D. FACE2FACE
Answer: D
Explanation:
FACE2FACE
An alternative to Carter's 10 C's.
Fixed assets, ability to deliver, cost, efficiency
Financial stability, ability to work with the buyer, commitment to quality, environmental / ethical factors.
NEW QUESTION # 30
'In any series of elements to be controlled, a selected small factor in terms of number of elements almost always accounts for a large factor in terms of effort'. Which well-known principle is being described here?
- A. Socrates
- B. Plato
- C. Pareto
- D. Machiavelli
Answer: C
Explanation:
This is the Pareto Principle, which can be invaluable as a guide for any procurement person, or any manager.
The other names shown here are those of other well-known thinkers, all much earlier than Pareto.
NEW QUESTION # 31
The abbreviation 'PDCA' represents the words:
- A. Purchase do check act
- B. Plan do check act
- C. Plan do check assess
- D. Procure, distribute to customers actively
Answer: B
Explanation:
The Plan-Do-Check-Act cycle, attributed to Deming, stresses the need for action in improving quali-ty. Plan Do Check and Assess would have been close to the correct answer, but not quite close enough.
The other responses shown here are simply made up to fit the letters.
NEW QUESTION # 32
Which of the following most closely represents 'the five rights'?
- A. PPTTQ
- B. PTQQQ
- C. QQPTT
- D. QQPPT
Answer: D
Explanation:
Quality, quantity, price, place, time. You will need to memorise these.
Note that for CIPS purposes, none of: goods (product or service), manner (ethics) or supplier, is in-cluded in this list. For the sake of ease, perhaps best to just go along with CIPS' view.
NEW QUESTION # 33
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