CIPS L4M2 Defining Business Need Exam Questions With 100% Correct Answers

CIPS L4M2 Defining Business Need Exam Questions With 100% Correct Answers Fixed Cost (FC) Costs that remain the same irrespective of business activity or volume Variable Cost (VC) Costs that vary with the level of output Market Factors Objectives Drivers Governance Ownership Commodity or Non-Commodity Break-Even Point (BEP) When total costs are equivalent to sales revenue (after this, it is profit) Solving a Problem SCAMPER Substitute Combine Adapt Modify Put to other uses Eliminate Reverse 3 Stages of the Priceberg 1. TCA 2. Maintenance 3. Disposal Identifying Business Needs - RAQSCI Regulatory Availability Quality Service Requirements Cost Innovation Direct Costs Directly associated with the production of a good or service e.g. a component Indirect Costs General running costs/Overheads Costs not easily attributed to specific goods or services e.g. electricity Semi-Variable Costs Made up of fixed and variable costs An industry is defined by... A seller A market is defined by... A buyer Straight Re-Buy The purchase of an item that was purchased last time there was a need rather than considering an alternative E.g. Utilities, Raw Materials or Maintenance, Repair and Operational (MRO) items Modified Re-Buy The purchase of an item that was purchased previously but with changes to the specification or supplier New Purchase The purchase of an item for the first time Closed Problem These appear when something happens that should not have happened Open-Ended Problem These are where something is stopping the achievement of an objective or blocking progress Solving a Problem 5 Whys