L4M8 CIPS question n answers graded A+ 2024/2025

L4M8 CIPSABC Analysis - correct answer A technique used to categories suppliers into three groups of decreasing value. A Group - 10-15% of your suppliers, but 80% of the spend. B Group - represent 20-25% of your suppliers, but only 15% spend. C Group - Represent 60-70% of your suppliers, but only 5% of the spend. Breakers - correct answer A company that buys decommissioned machinery and strips it of useful parts to then sell on. Business Case - correct answer A document containing the justification and the commercial benefits achievable for a potential project. Corporate Social Responsibility CSR - correct answer A business approach that contributes to sustainable development by delivering social, environmental and economic benefits for all stakeholders. The CSR policy may cover fundraising for charity, ethical behaviour, social and environmental policies. Deprecation - correct answer The reduction of value of a tangible and fixed asset over time ESI - Early Supplier Involvement - correct answer Working with suppliers at the start of projects to use their experience, knowledge and expertise. Tangible & Intangible - correct answer Tangible is something physical, that you can touch. Intangible is a service, insurance etc. Incoterms - correct answer Internationally approved terms that state how goods are transported from one party to another and when the title/risk is passed on. ISO4001 & ISO9001 - correct answer A document describing the requirements an organisation to fulfil to meet the ISO 9000 Standards