CIPS L4M1 TEST QUESTIONS AND VERIFIED
ANSWERS
Question 1
The NAO evaluates value for money through
Correct Answer
Efficiency
Economy
Effectiveness
Equity
Question 2
Purpose of Asset management / end-of-life / lessons learned
Correct Answer
to assess changing business requirements and whether the need is still valid. To
calculate end-of-life costs and review lessons learned
Question 3
Type of consortia
Correct Answer
-Loose
-Voluntary
-Regional
-Profit-making
-Member-owned
-Nonprofit
Page 1 of 49
,Question 4
eSourcing / eProcurement systems P2P
Correct Answer
relates to the electronic procurement of products or services via the internet. Other
systems such as electronic data interchange (EDI) and enterprise resource planning
(ERP) are also forms of...
Question 5
CSR in the private sector
Correct Answer
Using sustainable suppliers
Using recycled packaging
Donating a percentage of profits to a local charity
Contributing towards a community project
Question 6
Sectors of the economy
Correct Answer
primary, secondary, tertiary
Question 7
Consumer Rights Act 2015
Correct Answer
Delivering products or services that are fit for purpose
Question 8
private limited companies
Correct Answer
unlike a sole trader, it is a legal entity in its own right. This means it is legally
seperate from the people who run it and the company itself keeps any profitit
makes
Page 2 of 49
,Question 9
E-Ordering
Correct Answer
involves using and elctronic system to place orders in response to the e-
requisistions
Question 10
Centralized Procurement
Correct Answer
implies that purchasing decisions are made either by company headquarters or
some regional or divisional level
Question 11
M2M
Correct Answer
Machine to Machine communication
Question 12
Non-stock item
Correct Answer
Material for direct consumption and not put away in inventory
Question 13
Stage 10: Warehouse, logistics and receipt
Correct Answer
preparing to accept the item to the warehouse, creating locations if needed.
Relevant logistics communicated to the correct people. Courier delivery or
collection.
Upon receipt the following information should be checked. Conformance to quality
standards, do they need to be unpacked, do they need to be counted, do they need
to be scanned for barcodes.
Page 3 of 49
, Question 14
Stage 6: Supplier selection to participate in ITT/RFQ negotiation
Correct Answer
optional step relating to the decision about which suppliers are to receive the ITT or
RFQ. Buyers may undertake site visits, coduct audits or ask them to complete pre-
qualification questionnaires (PQQs) or request for information (RFI)
Question 15
Disadvantages of regulations in procurement
Correct Answer
-suppresses innovation
-may reduce competition
-time consuming
-costly
-strict evalutation process may remove best supplier
-one regulation does not always suit all genres
-inflexible
Question 16
Stage 13: Asset management and lessons learnt
Correct Answer
reviewing the contract that is in place and checking if it still meets the organisations
needs.
Question 17
Downstream
Correct Answer
processing the raw materials into the finished product
Page 4 of 49
ANSWERS
Question 1
The NAO evaluates value for money through
Correct Answer
Efficiency
Economy
Effectiveness
Equity
Question 2
Purpose of Asset management / end-of-life / lessons learned
Correct Answer
to assess changing business requirements and whether the need is still valid. To
calculate end-of-life costs and review lessons learned
Question 3
Type of consortia
Correct Answer
-Loose
-Voluntary
-Regional
-Profit-making
-Member-owned
-Nonprofit
Page 1 of 49
,Question 4
eSourcing / eProcurement systems P2P
Correct Answer
relates to the electronic procurement of products or services via the internet. Other
systems such as electronic data interchange (EDI) and enterprise resource planning
(ERP) are also forms of...
Question 5
CSR in the private sector
Correct Answer
Using sustainable suppliers
Using recycled packaging
Donating a percentage of profits to a local charity
Contributing towards a community project
Question 6
Sectors of the economy
Correct Answer
primary, secondary, tertiary
Question 7
Consumer Rights Act 2015
Correct Answer
Delivering products or services that are fit for purpose
Question 8
private limited companies
Correct Answer
unlike a sole trader, it is a legal entity in its own right. This means it is legally
seperate from the people who run it and the company itself keeps any profitit
makes
Page 2 of 49
,Question 9
E-Ordering
Correct Answer
involves using and elctronic system to place orders in response to the e-
requisistions
Question 10
Centralized Procurement
Correct Answer
implies that purchasing decisions are made either by company headquarters or
some regional or divisional level
Question 11
M2M
Correct Answer
Machine to Machine communication
Question 12
Non-stock item
Correct Answer
Material for direct consumption and not put away in inventory
Question 13
Stage 10: Warehouse, logistics and receipt
Correct Answer
preparing to accept the item to the warehouse, creating locations if needed.
Relevant logistics communicated to the correct people. Courier delivery or
collection.
Upon receipt the following information should be checked. Conformance to quality
standards, do they need to be unpacked, do they need to be counted, do they need
to be scanned for barcodes.
Page 3 of 49
, Question 14
Stage 6: Supplier selection to participate in ITT/RFQ negotiation
Correct Answer
optional step relating to the decision about which suppliers are to receive the ITT or
RFQ. Buyers may undertake site visits, coduct audits or ask them to complete pre-
qualification questionnaires (PQQs) or request for information (RFI)
Question 15
Disadvantages of regulations in procurement
Correct Answer
-suppresses innovation
-may reduce competition
-time consuming
-costly
-strict evalutation process may remove best supplier
-one regulation does not always suit all genres
-inflexible
Question 16
Stage 13: Asset management and lessons learnt
Correct Answer
reviewing the contract that is in place and checking if it still meets the organisations
needs.
Question 17
Downstream
Correct Answer
processing the raw materials into the finished product
Page 4 of 49
