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The Chartered Institute of Procurement and Supply (CIPS) is a globally recognized professional body that offers training and certification programs for procurement and supply chain professionals. One of the most important certifications offered by CIPS is the Level 4 Diploma in Procurement and Supply. This diploma is designed for professionals who want to advance their careers in procurement and supply chain management. The Level 4 Diploma consists of five modules, and one of these modules is Defining Business Needs.
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CIPS L4M2: Defining Business Needs is a certification exam offered by the Chartered Institute of Procurement and Supply (CIPS). L4M2 exam is designed to test the knowledge and skills of procurement professionals in defining and analyzing business needs, as well as in developing procurement strategies to meet those needs.
CIPS L4M2 exam is a critical step for procurement and supply chain professionals who want to advance their career in the field. Defining Business Needs certification demonstrates the candidate's proficiency in defining business needs and developing procurement strategies that align with organizational goals. It is also a valuable asset for organizations looking to hire procurement professionals who can deliver value by identifying and defining business needs effectively. The CIPS L4M2 Exam is a rigorous and challenging certification that requires extensive study and preparation, but it is also a rewarding achievement that can open up new opportunities for procurement and supply chain professionals.
CIPS Defining Business Needs Sample Questions (Q203-Q208):
NEW QUESTION # 203
Procurement should work closely with colleagues in accounts when creating an annual budget. This is because the budget will help the company ...
- A. Plan its finances for the next year
- B. Process supplier invoices quicker
- C. Define terms and conditions of the contract
- D. Plan its functional strategy for the next year
Answer: A
NEW QUESTION # 204
Which type of specification is less time-consuming to develop?
- A. Technical drawings
- B. Outcome-based specification
- C. Conformance specification
- D. Design specification
Answer: B
Explanation:
There are two major types of specification: conformance and performance specifications. They have the following characteristics:
Table Description automatically generated
Since performance specification is often a list of outputs or outcomes, it usually takes less time to develop than conformance specification.
Reference: CIPS study guide page 116-124
NEW QUESTION # 205
Which of the following factors is most likely to be a barrier to new entrant in agriculture?
- A. Reputation within the industry
- B. Brand recognition
- C. High margins
- D. Capital requirement
Answer: D
Explanation:
Barriers to Entry to Agriculture: If stakeholders are going to address the need for new, conserva-tion-minded farmers, they must understand the barriers these farmers encounter when transitioning into the profession. A review of the literature revealed a number of barriers-most of them structural-to entry to agriculture. While each barrier is distinct, they are all interconnected. Though not an exhaustive list, the following barriers are ones that were most frequently mentioned in the literature:
- Access to Affordable Land
- Startup Capital
- Lack of Agricultural Knowledge and Experience
- Lack of Knowledge about Farm Business Planning
- Discrimination
- Student Loans
- Limited Access to Markets
- Affordable Housing and Affordable Healthcare
...
Source: Exploring the Barriers to Entry to Agriculture: Challenges Facing Beginning Farmers in North Carolina - Kelley Robbins-Thompson Reference:
LO 2, AC 2.2
NEW QUESTION # 206
Halfords is a major bicycle and car parts retailer with long history in the market. Its suppliers are plentiful and there is no threat of forward integration. Some other smaller retailers are applying 3D-printing technology to make personalized bicycle parts but their market share is relatively low. 3D-printing technology is an example of which competitive force?
- A. Rivalry within the industry
- B. Threat of substitute
- C. New entrants may enter the market
- D. Bargaining power of buyer
Answer: B
Explanation:
3D-printed parts can replace traditional metal parts. They are also more easily customised to fit customer's needs. This technology is an example of threat of substitute in Porter's Five Forces model.
Substitute goods or services that can be used in place of a company's products or services pose a threat. Companies that produce goods or services for which there are no close substitutes will have more power to increase prices and lock in favorable terms. When close substitutes are available, customers will have the option to forgo buying a company's product, and a company's power can be weakened.
Reference:
- CIPS study guide page 85-96
- Porter's 5 Forces Definition: Analyzing Businesses (investopedia.com) LO 2, AC 2.2
NEW QUESTION # 207
Which kind of these following costs belong to fixed costs? Select TWO that apply.
- A. The depreciation of capital inputs
- B. The costs of leasing or purchasing capital equipment
- C. The packaging and distribution costs
- D. Energy consumption in manufacturing
- E. The annual income tax charged by local authorities
Answer: A,B
Explanation:
Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. Fixed costs, as its name suggests, is fixed in total i.e. irrespective of the number of output produced. Variable costs vary with the number of output produced. Semi-variable is the type of costs, which have the characteristics of both fixed costs and variable costs (Source: Key Differences).
Among above costs, leasing and depreciation are relatively static and do not change if volume of business activities increase or reduce.
Packaging, utilities and annual business rate (tax) are variable costs.
Reference:
LO 1, AC 1.2
NEW QUESTION # 208
......
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