Pass Your CIPS Level 3 Advanced Certificate in Procurement and Supply Operations L3M2 Exam Easily with Accurate PDF Questions [Jun 17, 2024]
L3M2 Certification Exam Dumps Questions in here
NEW QUESTION # 46
A common term to describe an approach to settling contractual disagreements:
- A. Alternative dispute discussion
- B. Alternative hypothesis
- C. Alternative dispute resolution
- D. Alternative dispute resumption
Answer: C
Explanation:
Alternative dispute resolution (ADR)
The other terms shown are irrelevant / fictional.
NEW QUESTION # 47
The axes on the Kraljic matrix are (select two):
- A. Supplier perception of the buyer
- B. Cost / profit impact
- C. Number of suppliers
- D. Risk to security of supply
Answer: B,D
Explanation:
Risk and financial impact.
NEW QUESTION # 48
A single purchase agreement created to cover multiple repeat orders for supplies from a single source, is called a:
- A. Frequency distribution
- B. Single source tender
- C. Call-off contract
- D. Automatic replenishment
Answer: C
Explanation:
Requirements are 'called off' from a single contract.
NEW QUESTION # 49
Select the two words which explain least well why the procurement of services can be more chal-lenging than the procurement of physical products:
- A. Perishable
- B. Inseparable
- C. Intangible
- D. Variable
- E. Unimaginable
- F. Permeable
Answer: B,C
Explanation:
The correct answers to the question are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services.
The other four answers are distinguishing features of services, which result in services being more challenging to buy.
NEW QUESTION # 50
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. Is the variance:
- B. None of the above?
- C. Adverse?
- D. Favourable?
Answer: D
Explanation:
As less has been spent than budgeted, the variance is favourable.
NEW QUESTION # 51
In the period in question, the budget for staff overtime and bonuses is zero.
The actual expenditure is 2,900.
Is this variance:
- A. Zero?
- B. Averse?
- C. Favourable?
- D. Adverse?
Answer: D
Explanation:
The variance is adverse - more was spent than budgeted - this is not favourable.
NEW QUESTION # 52
'Effectiveness is measured in terms of achieving an ...'
- A. Object
- B. Obstacle
- C. Obstruction
- D. Objective
Answer: D
Explanation:
Achieving an objective.
There is an implication that it should be the right objective.
NEW QUESTION # 53
Which of the following are likely to encourage sound ethical practices within a procurement department?
- A. Encouraging membership of CIPS for all staff
- B. After-hours socialising to develop better relationships with suppliers
- C. Generous levels of workplace training
- D. Annual audits
- E. Modest salaries
Answer: A,C,D
Explanation:
Audits, CIPS membership and effective training are all likely to foster an ethical culture in a pro-curement department.
Poor salaries or uncontrolled out-of-hours liaisons with supply companies may facilitate undesirable behaviour.
NEW QUESTION # 54
In developed economies such as the European Union and North America, there is no forced labour (modern slavery) in supply chains. True or false?
- A. True - these sophisticated economies have effective protections against such things
- B. False - there are unfortunately many thousands of modern slaves in these economies
- C. Don't know
Answer: B
Explanation:
The statement is false.
CIPS actively campaigns against modern slavery anywhere in the world.
NEW QUESTION # 55
You have invited quotations for some building maintenance work to be done at your organisational headquarters. Your sister has recently taken up a position as Head of Marketing at one of the firms which has quoted for the work. What should you do?
- A. Do nothing - you know you are honest and that is what matters.
- B. Disbar the firm your sister works in, from the exercise, as the connection could create undesirable rumours about malpractice.
- C. Ask your sister to take you out for dinner on her expense account to discuss the matter.
- D. Advise your line manager in writing, and ask to be excused from participation in this particular procurement exercise.
Answer: D
Explanation:
A simple solution is to 'recuse' yourself from anything to do with this procurement. That way, nei-ther you, your employer or your sister can be accused of malpractice.
Disbarring your sister's employer punishes them simply because both they and your firm employed high-quality people. :) Sometimes knowing you are honest is not enough: sometimes you have to demonstrate that.
So the only answer which makes sense is the correct one, as above.
NEW QUESTION # 56
A product of less-than-satisfactory quality might be said to have a:
- A. Affect
- B. Effect
- C. Reject
- D. Defect
Answer: D
Explanation:
The product has a defect; it might be rejected, then it would be a reject.
The effect of this might be that it would affect profitability.
NEW QUESTION # 57
A term used to describe preparatory activities undertaken after a contractor has been appointed, but before they have commenced work. Often used in projects, construction or management consultan-cy
- A. Mobilisation
- B. Globalisation
- C. work.
- D. Improvisation
- E. Synchronisation
Answer: A
Explanation:
It is probably often improvisation, but the correct answer is mobilisation: getting ready to undertake the task at hand.
It could be as simple as booking a team of consultants into a hotel room; it could be as complex as leasing bulldozers from the US, hiring cranes from China, and buying cement from Nigeria.
NEW QUESTION # 58
'The act of drawing the attention of someone in authority, to an alleged instance of unethical con-duct', is called:
- A. Whistleblowing
- B. Wetting one's whistle
- C. Whistling in the wind
- D. Whistle stopping
Answer: A
Explanation:
Whilst alerting senior managers to wrongdoing within the organisation may be whistling in the wind, requiring one to wet one's whistle afterwards, the term for this increasingly common practice in organisations is 'whistleblowing'.
NEW QUESTION # 59
The objective of value engineering has been described as:
- A. Doing more with the same
- B. Doing more with your time
- C. Doing more with more
- D. Doing more with less
Answer: D
Explanation:
Value engineering, like value analysis, but at the design stage, seeks to create at least as great an output, but with fewer components / inputs.
NEW QUESTION # 60
The abbreviation 'KPI' stands for:
- A. Key performance improvement
- B. Key procurement indicator
- C. Key performance inducement
- D. Key performance indicator
Answer: D
Explanation:
Key personnel insurance
Explanation:
Key performance indicator, designed to monitor a small number of critically-important aspects of supplier performance, indicated within a contract or a service level agreement as part of a contract.
NEW QUESTION # 61
Imagine that the Chief Executive of a UK bank attempted to learn the name of a whistleblower within the bank - the whistleblower had earlier reported wrongdoing within the bank to the state banking authorities anonymously. Trying to find the name of the whistleblower was a breach of the organisation's internal protocol which guaranteed anonymity to whistleblowers. Imagine the regula-tory authorities in both the UK and the US took action as a result. What is the most likely action which would be taken by the authorities?
- A. No further action - nothing happened
- B. The bank was closed down
- C. The bank was fined a substantial sum
- D. The Chief Executive was imprisoned
Answer: C
Explanation:
This actually happened and the banking authorities in both the UK and the US fined the bank heavily.
Closing the bank down would be too Draconian a step; imprisoning the Chief Executive could hap-pen and others in the banking sector have been imprisoned for wrongdoing - a famous case of 'The NatWest Three' saw three managers of a UK bank extradited and imprisoned in the US.
NEW QUESTION # 62
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. Replace XXXX.
- B. Designer
- C. Customer
- D. Manufacturer
- E. Specifier
Answer: C
Explanation:
Quality, like most things in business, is ultimately about the customer.
NEW QUESTION # 63
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