Cips certleader l4m2 Reviews Questions by Efan q72 vce pdf

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Exam Name:	Defining Business Needs
Exam Code:	L4M2 Dumps
Vendor:	CIPS	Certification:	CIPS Level 4 Diploma in Procurement and Supply
Questions:	237 Q&A's	Shared By:	efan

Question 64

A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company’s spend. Is that concern justified?

Options:

No, because the broader range of spend category can increase the value of the contract and the buyer may get volume discount

Yes, because the consolidation may create a large contract that costs more than placing each purchase order

No, because the consolidation will help the supplier to shorten deliver time.

Yes, because the suppliers can’t provide a broader range of products and they will fail to deliver

Discussion

Question 65

Raw materials used in the production of a saleable product are classed as ...

Options:

Direct costs

Indirect costs

Overheads

Fixed costs

Discussion

Question 66

Which of the following factors might prompt an organisation to procure an alternative product? Select THREE that apply:

Options:

Brand loyalty

Relative value to money between options

Buying organisation's propensities to change

Easy access to distribution channel

Threat of retaliation

Switching cost

Discussion

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Question 67

A garment manufacturer supplies global retailers with t-shirts, shirts, and linen trousers. Because of currency fluctuations, the manufacturer is aware that they must control their direct costs in order to ensure profits. Which of the following is a direct cost for the garment manufacturer?

Options:

Facilities rent

Cotton fabric

Utilities cost

Office staff payroll