©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
CIPS L3M2 Exam Questions and Answers
100% Pass
Monetary - Answer✔costs that contribute towards making the product
Fixed costs - Answer✔Costs that do not vary with the quantity of output produced
Variable costs - Answer✔costs that vary with the quantity of output produced
Direct costs - Answer✔costs attributed directly to the job or contract
Indirect costs - Answer✔costs not directly associated with the job or contract
The 5 Rights of Procurement - Answer✔Quantity
Quality
Time
Place
Price
Lifetime costing - Answer✔total anticipated costs of designing, procuring, running and
disposing of a fixed asset
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Costs included in Lifetime Costing - Answer✔Pre-purchase, item, operating, maintenance,
insurance and disposal
5 factors of Organisational Success - Answer✔People, purpose, procedures, customers and
resources
The 3 Es - Answer✔efficiency, effectiveness, economies
5S Framework Definition - Answer✔used to refine methods and procedures
5S Framework - Answer✔Sort, set in order, shine, standardise, sustain
Lean thinking definition - Answer✔identifying waste that may be hindering the success of a
project
Lean Waste Types - Answer✔transportation, inventory, motion, waiting, over-processing, over-
production and defects (TIMWOOD)
Effectiveness - Answer✔doing the right task
Efficiency - Answer✔doing the task right
Economies of scale - Answer✔the quantity is increased and price per unit decreases
Value engineering - Answer✔systematic approach to provide the lowest costs without losing
functionality for products not on the market
2
CIPS L3M2 Exam Questions and Answers
100% Pass
Monetary - Answer✔costs that contribute towards making the product
Fixed costs - Answer✔Costs that do not vary with the quantity of output produced
Variable costs - Answer✔costs that vary with the quantity of output produced
Direct costs - Answer✔costs attributed directly to the job or contract
Indirect costs - Answer✔costs not directly associated with the job or contract
The 5 Rights of Procurement - Answer✔Quantity
Quality
Time
Place
Price
Lifetime costing - Answer✔total anticipated costs of designing, procuring, running and
disposing of a fixed asset
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Costs included in Lifetime Costing - Answer✔Pre-purchase, item, operating, maintenance,
insurance and disposal
5 factors of Organisational Success - Answer✔People, purpose, procedures, customers and
resources
The 3 Es - Answer✔efficiency, effectiveness, economies
5S Framework Definition - Answer✔used to refine methods and procedures
5S Framework - Answer✔Sort, set in order, shine, standardise, sustain
Lean thinking definition - Answer✔identifying waste that may be hindering the success of a
project
Lean Waste Types - Answer✔transportation, inventory, motion, waiting, over-processing, over-
production and defects (TIMWOOD)
Effectiveness - Answer✔doing the right task
Efficiency - Answer✔doing the task right
Economies of scale - Answer✔the quantity is increased and price per unit decreases
Value engineering - Answer✔systematic approach to provide the lowest costs without losing
functionality for products not on the market
2
