2024 CIPS L3M3 Exam Dumps Questions

CIPS certification is a highly valuable and sought-after certification for IT professionals seeking to enhance their knowledge and expertise. L3M3 exam is specifically designed to validate the skills required to configure and maintain the CIPS Level 3 Advanced Certificate in Procurement and Supply Operations platform, which is widely used by businesses around the world. These L3M3 exam dumps questions are specifically designed to help you prepare for the exam by testing your knowledge and providing you with valuable insights into the types of questions that you will encounter. Test free CIPS L3M3 exam questions below.

Page 1 of 3

1. When both buyer and seller share cost information with each other (in both directions), in order to collaborate in cost reduction activities.

Open book costing

Co-destiny

Cost analysis

Cost transparency

 Loading...

2. Win-win negotiation is not commonly described as a (choose the most appropriate):

zero sun game

someone game

win some gain

zero sum game

 Loading...

3. Which of the following are internal factors in supplier decision-making? Choose two.

Extent of competition in the marketplace

Cost of production

Shareholder and managerial expectations of profit

Customer perceptions of value

 Loading...

4. What is the name given to costs which do not vary as activity levels in a business increase or de-crease?

Variable costs

Indirect costs

Direct costs

Fixed costs

 Loading...

5. Which of the following statements is untrue? Select two.

The framework arrangement establishes the basic terms and conditions that will apply to subsequent orders

A framework arrangement cannot be used for consultancy services, although it can be used for construction work.

There is an obligation to buy under a framework arrangement

In most cases, a framework arrangement is not itself a contract.

 Loading...

6. ‘A purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods or services which, on ac-ceptance, shall be the basis of the subsequent contract’

Competitive dialogue

Request for information

Invitation to tender

Expression of interest

 Loading...

7. Win-win style negotiations are said to be:

Collaborative

Cohesive

Coherent

Conducive

 Loading...

8. Where the supplier guarantees to make good any losses suffered by the buyer as a result of product defects, for example

Insurance

Indebtedness

Indemnity

Double indemnity

 Loading...

9. Contribution is equivalent to:

Selling price minus total costs

Selling price

Selling price minus fixed costs

Selling price minus variable costs

 Loading...

10. How many 'Whys'?

Five

Four

Three

Six

 Loading...

Page 2 of 3

11. Which of the following are external factors in supplier decision-making? Choose two.

The selling firm’s financial position

Market conditions, determining demand and supply

Customer perceptions of value

How badly the seller needs the business

 Loading...

12. When negotiating, it is highly desirable to have both a:

ZOPA and a TABNA

BATNA and a ZOPA

DOPA and a BANTA

BATNA and a FOPA

 Loading...

13. Looking specifically at how a quoted price compares to the cost of production is called:

Factor analysis

Price analysis

Psycho analysis

Cost analysis

 Loading...

14. Where all does not go well on a contract and there are significant increased costs of implementation, a contract clause may exist whereby both buyer and contractor share the unanticipated additional costs using a pre-agreed formula.

What is the expression which describes such an arrangement?

Painshare

Penalty clause

Gainshare

Rightful share

 Loading...

15. In a reverse online auction:

The highest bid wins

The seller sets up the auction

The lowest bid wins

No bid wins

 Loading...

16. The letters ‘MEAT’ stand for:

Most economically advantageous tender

Most environmentally advanced technology

Most environmentally advantageous tender

Main economically advanced tender

 Loading...

17. Transfer of the rights and obligations of a contract onto a third party, is called:

Assignment

Association

Acceptance

Assignation

 Loading...

18. When a proposal fits with organizational strategy / direction / values, this can be described as:

Alignment

Adjournment

Accompaniment

Ailment

 Loading...

19. Which of the following would be unethical? Choose two.

To place business with a company in which your sister works, having been instructed in writing to do so by your line manager

To negotiate with suppliers

To request quotations if the buyer has no intention to purchase

To request quotations from several suppliers if the buyer has already decided where the contract will be awarded

 Loading...

20. If your organisation takes out insurance cover to address various risks, which one of the following risk management strategies is it adopting?

Treat

Terminate

Tolerate

Transfer

 Loading...

Page 3 of 3

21. What do we call it when a seller sets a low introductory price to win customers, or to discourage competitors owing to the low margins achievable in the marketplace? Choose one.

Cost mark-up pricing

Competitive pricing

Promotional pricing

Penetration pricing

 Loading...

22. In legal parlance, in discussing / negotiating contract terms, something which is 'less than an offer', might be:

Invitation to tea

Invitation to treat

Consideration

Invitation to accept

 Loading...

23. The legal lessons included in this course are based on:

Scots law

English law

British law

European law

 Loading...

24. The price at which suppliers wish to sell and buyers wish to buy; and the market clears, is called the

Equilibrium price

Opprobrium price

Closing price

Polyvalent price

 Loading...

25. Key players have a:

High level of interest but little influence

High level of interest and little power

High level of power and a high level of interest

High level of power but little interest

 Loading...

26. A concise structured document showing all risks for a contract / unit / organisation, including details of nature of risk, risk owner, anticipated impact, possible responses, etc

Risk analysis

Risk register

Risk profile

Risk manual

 Loading...

27. In legal circles, ownership of something is often called:

Tithe

Tittle-tattle

Title

Total

 Loading...

28. Johnson, Scholes and Whittington suggested three key criteria for options which can be used in the evaluation of a business case.

Which word was not one of these three key criteria?

Transferability

Feasibility

Acceptability

Suitability

 Loading...

 Loading...