[2023] L4M2.pdf – Questions Answers PDF Sample Questions Reliable [Q53-Q76]

QUESTION 53
Which of the following are considered as direct costs in a construction company? Select TWO op-tions

QUESTION 54
Which of the following are the causes of material cost variance?
1. The buyer updates purchase-to-pay system to track payment and delivery
2. An unprocessed goods received note is missing
3. The employees must work overtime to catch up with the customers’ orders
4. The purchase is made in emergency

QUESTION 55
A drawing is an example of…?

QUESTION 56
Which of the following activities are considered as primary activities of an organization according to Porter’s value chain? Select TWO that apply:

QUESTION 57
Which of the following indicates types of waste that procurement department concentrates on when adopting Lean methods?

QUESTION 58
Which of the following are the fair and reasonable comparators in price analysis? Select TWO that apply:

QUESTION 59
When should procurement professional tolerate a risk?

QUESTION 60
Synergy Ltd is a fast-growing tool and hardware retailer. The company’s customer services team has been using Excel worksheets to manage customer relationships. When the company is expend-ing its market presence, this way of working leads to poorer customer services as the database is scattered around in spreadsheet, leading to patchy and inconsistent conversations with customers. The company decides to purchase a CRM system. What requirement should Synergy’s procurement team take into account in the specification for CRM system?

QUESTION 61
What is the document that defines the activities, deliverables and timelines a supplier must carry out during contract performance?

QUESTION 62
A CPO is analyzing whole life cycle costing of a machinery. He realises that cost elements are not specific but come from a range of values. Which whole-life costing model should the CPO use to get the most accurate total cost of ownership?

QUESTION 63
A procurement manager is requested to source a major component. She needs information on sup-pliers’ direct and indirect cost, fixed and variable costs to prepare for negotiations. Therefore, she collects 17 annual reports from potential suppliers who are competing in the same industry. In order to estimate an approximate value of fixed and variable costs in that industry, which of the following technique should be adopted by the procurement manager?

QUESTION 64
Which of the following are recognised competitive strategies?
1. Winning new business at all cost
2. Getting more customers’ attention
3. Creating stand-out products and brands
4. Focusing on niche market
5. Acquiring competitors

QUESTION 65
Which of the following can directly affect labour variance? Select TWO that apply:

QUESTION 66
A company buys components from its supplier. However, the supplier has not sent the invoice to the buyer and the buyer will not pay until next month. How will that amount of money be shown in the financial statements of the buying organization?

QUESTION 67
Which of the following may allow suppliers free to choose the materials, manufacturing process or delivery process?

QUESTION 68
Which of the following problems may be identified as open-ended problems? Select TWO that apply:

QUESTION 69
Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?

QUESTION 70
Why should procurement professionals develop business case before seeking approval to purchase capital equipment?

QUESTION 71
A hospital extensively spends on medical and implantable devices, medical, surgical and pharma-ceutical supplies, costs of supplies related to buildings and maintenance operations. Hospital’s procurement manager suggests that the hospital has an opportunity to reduce operational costs by reducing variation of medical devices and pharmaceutical supplies. Which of the following best describe the procurement manager’s suggestion?

QUESTION 72
Due to increasing demand, a local restaurant is requesting its fish vendor to supply larger quantity. The restaurant manager also asks the vendor whether it is possible to reduce the total price by 5%. This is known as…?

QUESTION 73
Apple’s CPO is planning a budget for purchasing carbon-free aluminium next year. There are 27.4 tonnes of aluminum in stock, while Apple will need 200 tonnes for production next year and double inventory for production in the following year. How much aluminum will Apple need to purchase in next year?

QUESTION 74
Robert is a senior buyer at MMC Construction Ltd. His company is doing multiple development projects in the country, which increases procurement workload significantly. Meanwhile, most of the tasks are handled manually, which causes bottlenecks in the workflows. The procurement team is overwhelmed by the workload and complains from other departments. From previous experience, Robert knows that electronic system may help his procurement team. He writes a business case to submit to the senior management, in which he insists on the possible productivity improvement by adopting e-system in procurement. Is Robert’s action reasonable?

QUESTION 75
When a procurement manager considers a substitution, the number and nature of additional func-tions that substitute provides should be taken into account carefully. Which of the following ratio could help the procurement manager to make the right decision?

QUESTION 76
A CPO is making a business case for acquiring a new computer system. He has set out objective, generated options, cost and benefit of each option and implementation plan. Which of the following elements should be included in the business case?