L4M2 Testking & L4M2 Tests

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CIPS L4M2 Exam Syllabus Topics:

SectionObjectives
Understand market management in procurement and supply- Contrast direct costs and indirect costs
  • 1. Sources of information to estimate costs and prices
- Compare the competitive forces that influence markets
  • 1. Availability of substitutes and threat of new entrants
  • 2. Bargaining strength of suppliers and buyers
Understand the use of specifications in procurement and supply
Understand how to develop a business case for requirements to be sourced from external suppliers- Analyse how market factors affect procurement

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L4M2 Übungsfragen: Defining Business Needs & L4M2 Dateien Prüfungsunterlagen

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CIPS Defining Business Needs L4M2 Prüfungsfragen mit Lösungen (Q242-Q247):

242. Frage
Which of these are variable costs?
* Staff overtime
* Premises costs
* Insurance costs
* Material costs

Antwort: A

Begründung:
Variable costs are those that fluctuate based on production levels, usage, or business activity. Understanding these is essential when developing a business case, as they affect operational cost planning.
The CIPS L4M2 Study Guide, Chapter 3: Whole-life costing and cost management, defines:
"Variable costs change with the level of output or activity. These include costs such as raw materials, fuel, energy based on usage, and overtime wages." Analysis:
* 1. Staff overtime - Variable. Incurred based on workload or production requirements.
* 2. Premises costs - Fixed. Rent or lease payments do not vary with production.
* 3. Insurance costs - Fixed. Usually a set annual premium.
* 4. Material costs - Variable. Directly linked to the amount of goods produced.
Correct answer: B (1 and 4 only)
CIPS Study Guide Reference:
* Module: L4M2 - Defining Business Needs
* Chapter 3: Cost Types
* Section: Fixed and Variable Costs


243. Frage
When devising a business case for purchasing a new copier, Maria analyses its whole-life costs as following:
Though cost generating activities are identified, she has not categorised the costs. What is the total value of copier's end of life costs?

Antwort: B

Begründung:
Life cycle costing is a key asset management tool that takes into account the whole of life implications of planning, acquiring, operating, maintaining and disposing of an asset.
The process is an evaluation method that considers all ownership and management costs. These include;
- Concept and definition;
- Design and development;
- Manufacturing and installation;
- Maintenance;
- Support services; and
- Retirement, remediation and disposal costs.
End of life costs often comprise of decommissioning, removing and disposal costs. In the copier scenario, the end of life costs equal to removal cost, which is $150.
Reference:
- Life Cycle Cost Guidelines (dlgsc.wa.gov.au)
- CIPS study guide page 36-40
LO 1, AC 1.2


244. Frage
Over the life of a product, which of the following would be considered non-value-adding costs?
* Rework costs
* Production costs
* Maintenance costs
* Waste disposal costs

Antwort: C


245. Frage
Which of these causes variances in budgets?
* Quantity discounts
* Substitute goods
* Loan repayments
* Corporation tax

Antwort: A

Begründung:
Detailed Explanation:
* Quantity discounts: Changes in order quantities can lead to cost savings, impacting budget forecasts.
* Substitute goods: Using alternative products can alter planned expenses, causing budget deviations.
Loan repayments and taxes are fixed financial obligations and do not directly impact procurement budgeting. Reference: CIPS Level 4, Cost Management.


246. Frage
Facing fiercer competition at home and abroad, IKEA, the leading furniture retailer, needs to im-prove its competitiveness. In order to do this, IKEA must decrease operating costs and improve quality of current and new retail stores. The company establishes a project team. The job of the team is to collect data on performance from multiple stores in several countries, then select the best performing one. The team will work closely with best performing store and study its processes. After the research, the team will recommend best practices to other retail stores. IKEA management can also apply these practices to new stores in the future. Which of the following correctly describe the process undertaken by IKEA project team?

Antwort: B

Begründung:
Basically, IKEA project team is undertaking the following process:
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This is a typical benchmarking process. Benchmarking is defined as the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations. Benchmarking provides necessary insights to help you understand how your organization compares with similar organizations, even if they are in a different business or have a different group of customers.
In the scenario, benchmarking process is undertaken within subsidiaries of IKEA, thus it is internal.


247. Frage
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