CIPS L4M8 TEST QUESTIONS AND VERIFIED
ANSWERS
Question 1
Disadvantages of agreeing a fixed exchange rate
Correct Answer
-potential savings could be missed
-may incur higher rate than live value
-no flexibility
-rate could be fixed at the wrong time
Question 2
Types of communication
Correct Answer
-face-to-face
-telephone
-email
-body language
-active listening
Question 3
Log rolling tactic
Correct Answer
The buyer presents many requests, where some have little or no value. When giving
conessions, the low-value requests can be conceded with no negative effect
Question 4
Sustainability
Correct Answer
concerns the longevity of the organisation, as well as its impact on the natural
world.
Page 1 of 70
,Question 5
kickback
Correct Answer
a form of bribery in which a sum of money is payable to an organisation in
exchange for a contract
Question 6
Training evaluation model
Correct Answer
Question 7
Service Level Agreement (SLA)
Correct Answer
A negotiated agreement between the customer and the vendor. The SLA may
specify the levels of availability, serviceability, performance, operation, or other
commitment requirements.
Question 8
COST
Correct Answer
Is the cost offered consistent with expectations and the competition?
Page 2 of 70
,Question 9
Carters outsource Matrix
Correct Answer
Form a strategic alliance. Some tasks are strategically important, but contribute
little to operational performance, so could be outsourced safely to a trusted partner.
Retain. Tasks in this quadrant are high in strategic importance and have a big
impact on operational performance. Retain these tasks in-house, so that you keep
the maximum level of control.
Outsource. Activities in this quadrant are important for successful operational
performance, but are not strategically important. These can be outsourced with little
risk.
Eliminate. Some tasks are not important to your organization's overall strategy, and
don't make a significant contribution to its day-to-day operational performance.
You could think about eliminating these activities completely.
Question 10
Benfits of effective supply management
Correct Answer
-enhanced control
-reduced risk
-continuous improvement
Page 3 of 70
, Question 11
Supplier relationship management considers the following
Correct Answer
-behaviour
-culture
-communication
-collaboration
-forecasting
-transparency
Question 12
Maintenence costs
Correct Answer
-reliability
-price of spare parts
-availability
-skilled technicians or engineers
-frequency of service requirements
-downtime due to maintenance
Question 13
Supplier Evaluation
Correct Answer
the process of evaluating and approving existing and potential suppliers by
quantitative assessment against specific business criteria.
Question 14
CONTROL
Correct Answer
Does the supplier have control over its policies, procedures and supply chain?
Page 4 of 70
ANSWERS
Question 1
Disadvantages of agreeing a fixed exchange rate
Correct Answer
-potential savings could be missed
-may incur higher rate than live value
-no flexibility
-rate could be fixed at the wrong time
Question 2
Types of communication
Correct Answer
-face-to-face
-telephone
-body language
-active listening
Question 3
Log rolling tactic
Correct Answer
The buyer presents many requests, where some have little or no value. When giving
conessions, the low-value requests can be conceded with no negative effect
Question 4
Sustainability
Correct Answer
concerns the longevity of the organisation, as well as its impact on the natural
world.
Page 1 of 70
,Question 5
kickback
Correct Answer
a form of bribery in which a sum of money is payable to an organisation in
exchange for a contract
Question 6
Training evaluation model
Correct Answer
Question 7
Service Level Agreement (SLA)
Correct Answer
A negotiated agreement between the customer and the vendor. The SLA may
specify the levels of availability, serviceability, performance, operation, or other
commitment requirements.
Question 8
COST
Correct Answer
Is the cost offered consistent with expectations and the competition?
Page 2 of 70
,Question 9
Carters outsource Matrix
Correct Answer
Form a strategic alliance. Some tasks are strategically important, but contribute
little to operational performance, so could be outsourced safely to a trusted partner.
Retain. Tasks in this quadrant are high in strategic importance and have a big
impact on operational performance. Retain these tasks in-house, so that you keep
the maximum level of control.
Outsource. Activities in this quadrant are important for successful operational
performance, but are not strategically important. These can be outsourced with little
risk.
Eliminate. Some tasks are not important to your organization's overall strategy, and
don't make a significant contribution to its day-to-day operational performance.
You could think about eliminating these activities completely.
Question 10
Benfits of effective supply management
Correct Answer
-enhanced control
-reduced risk
-continuous improvement
Page 3 of 70
, Question 11
Supplier relationship management considers the following
Correct Answer
-behaviour
-culture
-communication
-collaboration
-forecasting
-transparency
Question 12
Maintenence costs
Correct Answer
-reliability
-price of spare parts
-availability
-skilled technicians or engineers
-frequency of service requirements
-downtime due to maintenance
Question 13
Supplier Evaluation
Correct Answer
the process of evaluating and approving existing and potential suppliers by
quantitative assessment against specific business criteria.
Question 14
CONTROL
Correct Answer
Does the supplier have control over its policies, procedures and supply chain?
Page 4 of 70
