CIPS Level 4 Module 1 Questions and
Correct Answers
Question 1
Capital purchases procurement professionals will do the following
Correct Answer
1. Evaluate potential suppliers
2. Be involved in preparing specifications
3. Review quality and standards
4. Assess ethical requirements
5. Compare buy or lease options
6. Invesitgate transport
7. Review packaging options
8. Research total life cost
9. Calculate currency differences
10. Benchmark prices
11. Ensure assets are fit for purpose
Question 2
Procurement Cycle stage 13 Asset management
Correct Answer
Reviewing the contract that is in place to check if it still meets the organisation's
needs, and if there are any lessons to be learned.
Decommissioning or removing any asset that has come to the end of its life.
Question 3
why may SCM be unattractive
Correct Answer
1. High Investment
2. closer Relationships may not be appropriate
3. Complacency
4. Loss of control over confidential information
Page 1 of 72
,Question 4
Key areas in achieving value for money
Correct Answer
1. Currency / Exchange rates
2. Environmental Factors
3. Frieght Costs
4. Maintenance Costs
5. Packaging
6. Payment Terms
7. Place
8. Product / Service Price
9. Quality
10. Quantities / Inventory
11. Supplier Reputation
12 Time
13. Warranty
Question 5
disadvantages of policies and strategies
Correct Answer
1. Removes innovation
2. Can restrict supplier base
3. Same techniques/ tactics used by all
4. Loss of individuality
5. Formal relationships
6. Suppliers having to conform can cause resentment
Page 2 of 72
,Question 6
How to identify stakeholders?
Correct Answer
1. Who is affected directly and indirectly by the organisation's actions?
2. Who has power to influence the organisation's decisions?
3. Who would be concerned if the project/organisation succeeded or failed?
4. Who has a personal interest in the project/organisation?
5. Who will benefit through success of the project/organisation?
6. Who could help solve problems?
7. Who sets the regulations that must be adhered to?
8. Who carries out related actions?
Question 7
Main elements in the code of ethics
Correct Answer
1. Values
2. Principles
3. Personal Responsibility
4. Compliance
5. Reporting
Question 8
Compliance and achieving outcomes 1 of 2
Correct Answer
1. Help to ensure consistency transparency and compliance with a procurement
department.
2. Instruct buyers on what to do to ensure that tenders and quotations are
evaluated fairly, and that suppliers are all dealt with in the same way.
3. Reduce risks by providing guidelines for decision-making, which aids compliance
and ultimately saves the buying organisation time and money, making them more
efficient.
4. Advise buyers how to conduct themselves when representing the organisation
and the procurement profession.
5. Can be used to help procurement professionals identify the type of suppliers that
should be engaged with and those that should be avoided, on the basis of their
ethics, sustainability and corporate social responsibility (CSR) policy.
Page 3 of 72
, Question 9
Ethics in procurement relates to
Correct Answer
1. Modern Day Slavery
2. Child Labour
3. Bribery
4. Fair Trade
5. The environment
Question 10
Disadvantages of Hybrid structures (outsourcing)
Correct Answer
1. Difficulty in managing the change from internal to outsourced procurement
2. Lack of control
3. Need to ensure time spent managing outsource suppliers is less than time
previously spent on task
4. Can be problems integrating company systems with the outsources procurement
function
5. Redundancies in current procurement team
6. Lack of continuity of supply and supplier relationships
Question 11
External Logistics
Correct Answer
1. Distribution
2. Transport
3. Retail
Page 4 of 72
Correct Answers
Question 1
Capital purchases procurement professionals will do the following
Correct Answer
1. Evaluate potential suppliers
2. Be involved in preparing specifications
3. Review quality and standards
4. Assess ethical requirements
5. Compare buy or lease options
6. Invesitgate transport
7. Review packaging options
8. Research total life cost
9. Calculate currency differences
10. Benchmark prices
11. Ensure assets are fit for purpose
Question 2
Procurement Cycle stage 13 Asset management
Correct Answer
Reviewing the contract that is in place to check if it still meets the organisation's
needs, and if there are any lessons to be learned.
Decommissioning or removing any asset that has come to the end of its life.
Question 3
why may SCM be unattractive
Correct Answer
1. High Investment
2. closer Relationships may not be appropriate
3. Complacency
4. Loss of control over confidential information
Page 1 of 72
,Question 4
Key areas in achieving value for money
Correct Answer
1. Currency / Exchange rates
2. Environmental Factors
3. Frieght Costs
4. Maintenance Costs
5. Packaging
6. Payment Terms
7. Place
8. Product / Service Price
9. Quality
10. Quantities / Inventory
11. Supplier Reputation
12 Time
13. Warranty
Question 5
disadvantages of policies and strategies
Correct Answer
1. Removes innovation
2. Can restrict supplier base
3. Same techniques/ tactics used by all
4. Loss of individuality
5. Formal relationships
6. Suppliers having to conform can cause resentment
Page 2 of 72
,Question 6
How to identify stakeholders?
Correct Answer
1. Who is affected directly and indirectly by the organisation's actions?
2. Who has power to influence the organisation's decisions?
3. Who would be concerned if the project/organisation succeeded or failed?
4. Who has a personal interest in the project/organisation?
5. Who will benefit through success of the project/organisation?
6. Who could help solve problems?
7. Who sets the regulations that must be adhered to?
8. Who carries out related actions?
Question 7
Main elements in the code of ethics
Correct Answer
1. Values
2. Principles
3. Personal Responsibility
4. Compliance
5. Reporting
Question 8
Compliance and achieving outcomes 1 of 2
Correct Answer
1. Help to ensure consistency transparency and compliance with a procurement
department.
2. Instruct buyers on what to do to ensure that tenders and quotations are
evaluated fairly, and that suppliers are all dealt with in the same way.
3. Reduce risks by providing guidelines for decision-making, which aids compliance
and ultimately saves the buying organisation time and money, making them more
efficient.
4. Advise buyers how to conduct themselves when representing the organisation
and the procurement profession.
5. Can be used to help procurement professionals identify the type of suppliers that
should be engaged with and those that should be avoided, on the basis of their
ethics, sustainability and corporate social responsibility (CSR) policy.
Page 3 of 72
, Question 9
Ethics in procurement relates to
Correct Answer
1. Modern Day Slavery
2. Child Labour
3. Bribery
4. Fair Trade
5. The environment
Question 10
Disadvantages of Hybrid structures (outsourcing)
Correct Answer
1. Difficulty in managing the change from internal to outsourced procurement
2. Lack of control
3. Need to ensure time spent managing outsource suppliers is less than time
previously spent on task
4. Can be problems integrating company systems with the outsources procurement
function
5. Redundancies in current procurement team
6. Lack of continuity of supply and supplier relationships
Question 11
External Logistics
Correct Answer
1. Distribution
2. Transport
3. Retail
Page 4 of 72
