Pass4Future also provide interactive practice exam software for preparing CIPS Ethical Procurement and Supply (L3M2) Exam effectively. You are welcome to explore sample free CIPS L3M2 Exam questions below and also try CIPS L3M2 Exam practice test software.
Do you know that you can access more real CIPS L3M2 exam questions via Premium Access? ()
The price / cost ...
Answer : A
The price / cost iceberg.
The notion that when you buy something for a price, only part of the total cost has been exposed. a potentially very significant chunk of cost remains unseen, 'below the waterline'.
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:
Answer : D
This is a definition of embezzlement.
The other terms shown as possible answers are also part of the syllabus for this subject.
'From an accounting perspective, added value is total XXXXXX minus total costs of all activities'.
Which word is missing?
Answer : D
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.
Value can be added through XXXX reduction or by making a process more efficient or more effective'
Answer : C
This is a reference to cost reduction - something which procurement is often tasked with as an activ-ity.
This question is pretty straightforward - we wouldn't normally seek cash, profit or value reductions. However, there is something a little bit counter-intuitive: adding or creating something by making a reduction... Perhaps 'less is more'.
The axes on the Kraljic matrix are (select two):
Answer : A, D
Risk and financial impact.
