Free CIPS L4M2 Exam Dumps Questions & Answers

An organisation's procurement team is in the best position to make the following contribution to the specification development process, to ...

• A.Argue in favour of using conformance specifications, instead of performance specifications
• B.Provide advice that the economic order quantity is the most important factor in the drafting of specifications
• C.Ensure that the views of the suppliers are given priority over those of other stakeholders
• D.Provide the supply market perspectives, in terms of the potential suppliers and alternative solutions

Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:

• A.To provide an outline business case for the specification
• B.To decide whether there will be sufficient surplus funds to reinvest in the business
• C.To shape and manage supply market
• D.To find cost reduction opportunities by optimising the components used
• E.To determine the value of each component used

What is the contribution of marketing function to the development of specification?

• A.Marketing ensures that procurement function doesn't involve in developing specification
• B.Marketing provides ideas on customer's taste and market trends
• C.Marketing ensures that conformance specification will never be used
• D.Marketing consults on technical requirements of the product

Which kind of these following costs belong to fixed costs? Select TWO that apply.

• A.Energy consumption in manufacturing
• B.The costs of leasing or purchasing capital equipment
• C.The packaging and distribution costs
• D.The annual income tax charged by local authorities
• E.The depreciation of capital inputs

Which of the following is a risk to buying organization when using conformance specification?

• A.Buyer is responsible for product failure
• B.Buyer may face liquidity risks
• C.Time to produce specification is shortened
• D.Buyer cannot control the inputs