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CIPS L4M2 Exam Syllabus Topics:
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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/def%C4%B1ning-business-need
CIPS Defining Business Needs Sample Questions:
A conformance specification with designs should contain more detail than a performance specification with outputs. Is this statement TRUE or FALSE?
- A. False, outputs are usually easier to describe than designs
- B. True, the supplier will need to know exactly what is required
- C. False, the outputs should include detailed drawings of the requirement
- D. True, the supplier will need to allow for innovation
Correct Answer: B 🗳️
When making a business case, the proposal has to consider financial costs, non-financial costs and opportunity costs. What is an opportunity cost?
- A. Opportunistic expenditure incurred in speculative Activities such as auctions
- B. The cost of lost opportunities because of operational disruption or reputational damage
- C. Opportunity foregone by choosing to spend on one option instead of the other
- D. The expenditure incurred by investing m costly and opportunistic ventures such as mergers
Correct Answer: C 🗳️
A company is considering buying a new computer system to handle large amounts of personal data and expects the system to perform in a particular way. Which of the following should be included in the performance specification? Select TWO that apply.
System operating conditions
- A. List of inputs
- B. Technical drawings
- C. Brand name
- D. List of outputs
Correct Answer: C,D 🗳️
The buyer ' s database is regarded as a primary data source. Which of the following is also a source of primary data?
- A. Published economic indices such as the retail price index (RPI)
- B. Price lists collected from suppliers ' representatives at trade fairs
- C. Financial and trade press, including journals published by professional bodies
- D. Price listings on comparison websites and market exchanges
Correct Answer: B 🗳️
Which of the following is the new technology that has impact on manufacturing sector?
- A. Robotics
- B. Social Media
- C. E-commerce
- D. Blockchain
Correct Answer: A 🗳️
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