Practice L5M6 Exam Online

Question 1

Which of the following approaches to cost is the least transparent?

A : price management

B : price acceptance

C :

cost down

D : cost out

Answer: B

Question 2

In order for Category Management to be a success, it is important to have business commitment and stakeholder buy-in. Is this TRUE?

A :

Yes- if the organisation is to realise the benefits of Category Management, it must be fully endorsed and supported by top management

B : Yes- Category Management is a tactical approach to sourcing and therefore requires cross-functional teamworking to succeed

C : No- Categories can work independently of each other and therefore do not require stake-holder buy-in.

D : No- business commitment is only required for high spend categories

Answer: A

Question 3

According to Porter's 5 Forces, supplier power is strong in industries where which of the following is true? Select THREE

A : no substitutes are available

B : supplier's customers are fragmented

C : switching costs are low

D : forward integration is possible

E : the product is undifferentiated

Answer: A,B,D

Question 4

Which of the following will you put into box 6?

A : Profitability Concern

B : Liquidity Concern

C :

Gearing Concern

D : Efficiency Concern

Answer: C

Question 5

Joan is a Category Manager at a packaging plant in Birmingham, UK. Her company creates and supplies different forms of packaging to manufacturers in the food and retail sectors. She is creating a Profile of the Category she manages in order to identify the spend category. By obtaining data on her Category, which of the following will Joan be able to do?

A : Find alternative suppliers

B : Prepare projections and budgets for the future

C : Competitive Supplier Selection

D : Benchmarking

Answer: B

Name:	CORE Level 5 Advanced Contract & Financial Management
Exam Code:	L5M6
Certification:	Level 5 Advanced Diploma in Procurement and Supply
Vendor:	CIPS
Total Questions:	122
Last Updated:	Apr 22, 2024

CIPS L5M6