L4M4 Dumps To Pass CIPS Exam in 24 Hours – ExamBoosts [Q44-Q62]

ExamBoosts August 13, 2024 L4M4 > CIPS 0

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L4M4 Dumps To Pass CIPS Exam in 24 Hours – ExamBoosts

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NO.44 Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these. Which of the following items would be C category items?

high value items

one-off purchases

tail spent

strategic sourcing

The C category is the ‘tail spend’ – it represents a large number of suppliers of small value items.
I recommend giving this a read ABC Classification & ABC Method | CIPS

NO.45 Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

phishing

verbal contracts

golden handshake

facilitation payment

This is a facilitation payment. It’s when a sum of money is given for ‘helping to facilitate’ a contract. E.g. a procurement manager may accept a facilitation payment from a supplier for selecting him to be a new supplier for a big contract.
In the UK this is definitely considered a bribe. It’s also against the CIPS Code of Conflict

NO.46 In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony. Which negotiation tactic is the supplier using?

competitive

collaborative

compromising

accommodating

This is accommodating: the supplier puts the buyer’s interest above his own.
This is from the Thomas Killman model of conflict resolution. There are 5 strategies; competitive, collaborative, avoiding, accommodating and compromising. In the study guide it doesn’t mention the name of the model but you do need to know the 5 strategies. The model comes up a lot in other modules so is a good one to learn. Particularly L5M1 which is about management theory.

NO.47 Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?

balance sheet

ESG policy

profit and loss account

cash flow statement

A cash flow statement shows the money coming in and out. This would therefore show whether a supplier has enough money coming in, to be able to pay some of it out to a subcontractor.
P&L and Balance Sheets look more broadly at finances, rather than saying what’s physically in the bank at a specific given time.
Do learn the difference between these three financial documents for the exam.
Balance Sheet: Explanation, Components, and Examples (investopedia.com) Profit and Loss Statement Meaning, Importance, Types, and Examples (investopedia.com) Cash Flow Statement: How to Read and Understand It (investopedia.com)

NO.48 What is a major benefit to using Incoterms when sourcing goods internationally?

it ensures value for money

it ensures ethical business practices

it replaces lengthy contractual clauses

it replaces the need for insurance

Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it’s completely random how many you’ll get on this topic.

NO.49 Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs. Which of the following should Scott consider? Select THREE

Added value

Maintenance

Acquisition Costs

Training

Functional Fit

total life-cycle costs include; acquisition costs, maintenance and training.
Added value and functional fit are quality criteria that should also be evaluated when selecting a supplier, but do not fall under total life-cycle costs.
Note: total life cycle costs and whole life asset management are the same thing. You may see both terms used in the exam. I think CIPS is moving more towards Whole Life Asset Management now as the preferred vocabulary but they’re the same thing.

NO.50 Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?

freedom of Belief and to change beliefs

the right to be treated equally

the right to free speech

the right to change nationality

the right to change nationality is not included in the UN Declaration of Human Rights. There are 30 in total but you’re not expected to know them all. You should know the big ones though which are; life, security, belief, equal treatment, free speech and expression. A summary can be found here: Universal Declaration of Human Rights | United Nations

NO.51 Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?

yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT

yes- 25 is the correct weighting for quality question

no- the weighting should total 10

no- the weighting should total 100

weighted points systems for assessments should add up to 100. This is 100%.
An example is how this would work is
Price = 50%
Health and Safety questions= 30%
Qualifications = 20%

NO.52 The Freedom of Information Act is a piece of UK legislation which allows members of the public to request information on issues such as public sector sourcing. When a request is made, it is compulsory for the public sector to provide this information to the public. Is this statement true?

yes- the information must be provided within 28 days

yes- the information must be posted publically online

no- the public sector can choose not to publish information if it is not deamed to be in the public interest

no- the public sector does not need to provide information on sourcing activities

the correct answer is ‘no- the public sector can choose not to publish information if it is not deemed to be in the public interest’.
They use something called the ‘public interest test’ to determine if the information should be re-leased or not.
For example they may not respond to a request asking how many bullets the UK Army has in storage, as that would be detrimental to national security interests.
Responses to requests are made within 21 days, not 28.

NO.53 Which of the following is not a indices that measures economic data?

PPI

CPI

GDP

ISO

ISO isn’t an indices- it stands for ‘International Labour Association’.
The others are all indices that measure economic data; consumer price index, producer price index and gross domestic product.

NO.54 During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

develop strategy

supplier selection

contract award

asset management

At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk).
At develop strategy stage you’re not even looking at suppliers yet- you’re just deciding what you need. At contract award and asset management it’s too late.
CIPS procurement cycle – Procurement Supply Cycle | CIPS

NO.55 When selecting a supplier on technical merit, its important that the supplier is a good ‘functional fit’ for the organisation. What is meant by ‘functional fit’?

the supplier is able to adhere to the same ethical standards

the supplier is able to work at the same technical level as the buyer

the supplier shares a common supply chain

the supplier makes a similar profit to that of the buyer

The correct answer is ‘the supplier is able to work at the same technical level as the buyer’. It’s aboutbeing able to integrate the businesses together in terms of IT systems and such like.

NO.56 Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

data protection

product safety standards

marketplace competition

ethical practice

the correct answer is ‘marketplace competition’.
Ethical practice is about prohibiting corrupt and unfair practice, rather than issues of supply and demand.
Although being in a cartel is ‘unethical behavior’ this option doesn’t fully answer the question which talks about limiting supply- this is related to marketplace competition.

NO.57 Which of the following payment mechanisms is most beneficial to the buyer?

open/ credit account

term / time draft

sight draft

cash in advance

Open account (aka credit account) is most beneficial to the buyer. The supplier delivers the goods then the buyer pays.
Cash in advance is most beneficial to the supplier. The buyer pays for the item before receiving it.
This is a known exam topic.

NO.58 Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?

metals, energy, elements and agriculture

fruit, vegetables, meat and dairy

energy, agriculture, metals, livestock

chemicals, agriculture, metals and livestock

energy, agriculture, metals, livestock are the four trading categories on the stock exchange. Some-times there’s a 5th category added which is ‘environmental credits’. This is a fairly new thing and you don’t need to know anything about this for this exam.
Question no commodities will mainly centre around characteristics of commodities and factors that affect pricing.
Commodities are discussed much more in detail in L5M4. At level 4 you just need a basic overview.

NO.59 GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?

the value of public limited companies within a country

the monatary value of the goods manufactured in a financial period

the value of commodities such as steel, oil and wheat at a point in time

average changes in price over a year

GDP = gross domestic product = “the monetary value of goods and services manufactured or sup-plied in a financial period”. People use it to say whether a country’s economy is strong or weak.
Stock markets look at the value of public limited companies within a country.
Commodity indices look at the value of commodities such as steel, oil and wheat at a point in time Average changes in price over a year can be measured by CPI or PPI

NO.60 Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

the supplier is extremely profitable

the supplier has a lot of long-term debt

the supplier has a high cost of sales

the supplier has a strong return on investment

The correct answer is ‘the supplier has a lot of long-term debt’. Gearing is a measure of how the business is being funded and looks at the ratio of debt to equity. For example if they have taken out lots of loans and mortgages, this would equate to a lot of debt which means a poor gearing ratio.
Gearing is a hot topic for the exam.

NO.61 Which of the following would be considered a strategic sourcing activity?

an office ordering copier paper

a bakery ordering eggs

a factory ordering a new machine

a restaurant ordering plastic cups

a factory ordering a new machine is the correct answer.
Strategic sourcing is for high value, high risk items. The other options given are tactical sourcing as they are low value (eggs, paper and plastic cups).
See p.3 for the differences between tactical and strategic sourcing

NO.62 Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?

yes- ethics and sustainability form part of ‘value for money’

yes- ethics and sustainability show that the products are fit for purpose

no- ‘value for money’ is concerned with achieving the lowest price

no- ‘value for money’ only concerns price and if the product is fit for purpose

“yes- ethics and sustainability form part of ‘value for money’ ” is the correct answer.
There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.

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