Free CIPS L3M4 Exam Dumps Questions & Answers

One of the appendices to a formal contract should be a 'pricing schedule'. This is because price is the most important item of a contract and it is a requirement for it to be detailed in a pricing schedule. Is this a correct statement?

• A.No, because it is not a requirement to attach a pricing schedule if complex pricing terms are not applicable to that particular contract
• B.No, a pricing schedule is required only if other attachments such as a non-disclosure agreement and insurance policy are also appended
• C.Yes, because all contracts are required to have detailed pricing terms, such as fixed prices, incentives, and price escalation, which must be attached
• D.Yes, because the contract is always a very large document and the parties need easy access to price information to negotiate increases

Prior to circulating the service specification to a tendering supplier, it is good practice for the purchasing organisation to request completion of a non-disclosure agreement. Is this statement correct?

• A.No, because the non-disclosure agreement only applies after contracting
• B.Yes, because the non-disclosure agreement protects intellectual property
• C.No, because the non-disclosure agreement has no legal standing
• D.Yes, because the non-disclosure agreement encourages transparent bidding

In the application of price adjustment formulae, which of the following would be acceptable for a supplier to increase its selling price?

• A.Rising share prices
• B.Rising fuel costs
• C.Rising incidence of defects
• D.Rising market expectations

Which one of the following is very commonly seen as being the primary role of the procurement function (especially by those outside the procurement function)?

• A.Sourcing new materials for products under development
• B.Developing deep relationships with long-term suppliers of key goods and services
• C.Cost reduction
• D.And yet on many occasions, it should not be the primary focus.
• E.Participating in international procurement conferences and developing staff

Which one of the following is unlikely to appear in an organisational procurement manual?

• A.Staff names
• B.Policies
• C.Instructions
• D.Procedures