CIPS Level 4 Module 2 Defining
Business Needs Exam Guide 2026
1. Acceptance test- A form of testing used to determine if the requirements of a specification or
ing contract are met
2. Accrual an adjustment made to a set of financial accounts to reflect activity that has
occurred but for which cash has not yet been received or paid
3. Annual planning planning involves analysis of opportunities, setting aims, exploring options, pro-
cycle ducing detailed plans and reviewing plan against expectation
4. approved suppli- list of approved suppliers who have the skills to undertake the work
er list
5. arms-length rela- relationship between two parties where either or both of the parties are not
tionship interested in developing a closer relationship
6. asset value the value of everything an organisation owns
7. bargaining pow- the relative ability of one party to exert influence over another in negotiation or
er commercial dealing
8. benchmarked comparing an element of one business, such as price, quality or service, against
price another
9. bill of materials a comprehensive list of components, items, materials and parts to create a prod-
uct, essentially a recipe for the production of an item.
10. break-even point the level of output of a business at which revenue equals total costs
11. Breakthrough re- the achievement of a particularly important and significant result
sult
12. business case a justification for a proposed project or undertaking on the basis of its investment
and cost implications balanced against its expected benefits
13.
, Business Re- the activities that meet the need of, and provide value to, the business (also called
quirement business need)
14. Business Re- sets out what the product or service needs to achieve if all stakeholders are to be
quirement Defin- satisfied
ition (BRD)
15. Buying Off-con- the purchase of an item without a contract when a contract for that item already
tract exists
16. call off the purchase of an item using a framework agreement that has already been
through a procurement process
17. capability the ability of a supplier to meet an organisations specific business requirements
18. cash flow the amount of money going into and out of a business
19. change manage- the process, tools and techniques for dealing with the people aspect of change
ment to achieve the business outcome required.
20. collaborative long term agreement between a buying organisation and a selling organisation
agreement which sets out how each party proposes to share information, costs, risks and
results by working together on a product or service
21. company annual reports released once a year as a way of communication with shareholders about
report the performance of a company
22. competitive as- the act of disassembling a competitor or supplier product into its component parts
sessment/ 'tear- so that its costs can be estimated
down'
23. competitive bids suppliers submissions in the process, by which an organisation selects from a
number of competing suppliers to award a contract
, 24. consumer mar- a marketplace involving individual consumers rather than businesses or compa-
ket nies
25. continuous im- an ongoing ettort to improve products, processes and services
provements
26. corporate goals the targets set by an organisation or company that will achieve the organisations
missions or objectives
27. cost estimating the process for arriving at the approximate cost of a product or service
28. cost leadership a strategy used by businesses in order to gain a competitive advantage by having
the lowest cost of operation within their particular industry
29. cost model a process designed to assess and calculate all costs associated with producing or
delivering a product or service and arrive at a provable end cost
30. cost-benefit a technique for deciding whether to follow a particular course of action based on
analysis its financial impact
31. cost-down ap- the reduction of a cost in the manufacture of a product or the delivery of a service
proach by means of changing an item in the specification
32. cost-out ap- the elimination of a cost in the manufacture of a product or the delivery of a service
proach by means of removing an item from the specification
33. criteria principles or standards used to judge or decide something
34. critical path the sequence of steps in a project plan that together determine the shortest time
to complete the project
35. cross-functional a group of people with ditterent skills and specialisms coming together to achieve
collaboration a common purpose
36.
Business Needs Exam Guide 2026
1. Acceptance test- A form of testing used to determine if the requirements of a specification or
ing contract are met
2. Accrual an adjustment made to a set of financial accounts to reflect activity that has
occurred but for which cash has not yet been received or paid
3. Annual planning planning involves analysis of opportunities, setting aims, exploring options, pro-
cycle ducing detailed plans and reviewing plan against expectation
4. approved suppli- list of approved suppliers who have the skills to undertake the work
er list
5. arms-length rela- relationship between two parties where either or both of the parties are not
tionship interested in developing a closer relationship
6. asset value the value of everything an organisation owns
7. bargaining pow- the relative ability of one party to exert influence over another in negotiation or
er commercial dealing
8. benchmarked comparing an element of one business, such as price, quality or service, against
price another
9. bill of materials a comprehensive list of components, items, materials and parts to create a prod-
uct, essentially a recipe for the production of an item.
10. break-even point the level of output of a business at which revenue equals total costs
11. Breakthrough re- the achievement of a particularly important and significant result
sult
12. business case a justification for a proposed project or undertaking on the basis of its investment
and cost implications balanced against its expected benefits
13.
, Business Re- the activities that meet the need of, and provide value to, the business (also called
quirement business need)
14. Business Re- sets out what the product or service needs to achieve if all stakeholders are to be
quirement Defin- satisfied
ition (BRD)
15. Buying Off-con- the purchase of an item without a contract when a contract for that item already
tract exists
16. call off the purchase of an item using a framework agreement that has already been
through a procurement process
17. capability the ability of a supplier to meet an organisations specific business requirements
18. cash flow the amount of money going into and out of a business
19. change manage- the process, tools and techniques for dealing with the people aspect of change
ment to achieve the business outcome required.
20. collaborative long term agreement between a buying organisation and a selling organisation
agreement which sets out how each party proposes to share information, costs, risks and
results by working together on a product or service
21. company annual reports released once a year as a way of communication with shareholders about
report the performance of a company
22. competitive as- the act of disassembling a competitor or supplier product into its component parts
sessment/ 'tear- so that its costs can be estimated
down'
23. competitive bids suppliers submissions in the process, by which an organisation selects from a
number of competing suppliers to award a contract
, 24. consumer mar- a marketplace involving individual consumers rather than businesses or compa-
ket nies
25. continuous im- an ongoing ettort to improve products, processes and services
provements
26. corporate goals the targets set by an organisation or company that will achieve the organisations
missions or objectives
27. cost estimating the process for arriving at the approximate cost of a product or service
28. cost leadership a strategy used by businesses in order to gain a competitive advantage by having
the lowest cost of operation within their particular industry
29. cost model a process designed to assess and calculate all costs associated with producing or
delivering a product or service and arrive at a provable end cost
30. cost-benefit a technique for deciding whether to follow a particular course of action based on
analysis its financial impact
31. cost-down ap- the reduction of a cost in the manufacture of a product or the delivery of a service
proach by means of changing an item in the specification
32. cost-out ap- the elimination of a cost in the manufacture of a product or the delivery of a service
proach by means of removing an item from the specification
33. criteria principles or standards used to judge or decide something
34. critical path the sequence of steps in a project plan that together determine the shortest time
to complete the project
35. cross-functional a group of people with ditterent skills and specialisms coming together to achieve
collaboration a common purpose
36.
