CIPS Exam A8 Topic 1 Question 60 Discussion

Actual exam question for CIPS's A8 exam

Question #: 60
Topic #: 1

Which of the following best describes the term 'progress payments'?

AA series of payments made at prescribed stages during the contract, usually linked to work satisfactorily completed

BA payment withheld for a period of time after the end of the contract period to ensure satisfactory completion of the contract

CA payment made in advance of the supplier commencing work to enable materials to be purchased

DA payment made to an international supplier using a currency of the suppliers choice.

Show Suggested Answer

Suggested Answer: C

by Lyla at May 31, 2024, 02:18 AM

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Matthew

5 months ago

Ha, D is just silly. Why on earth would you let the supplier choose the currency? That's a recipe for disaster!

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Kiley

4 months ago

Ha, D is just silly. Why on earth would you let the supplier choose the currency? That's a recipe for disaster!

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Hyman

4 months ago

A) A series of payments made at prescribed stages during the contract, usually linked to work satisfactorily completed

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Orville

5 months ago

Hmm, I was thinking B might be the right answer, with that payment withheld at the end. But A makes more sense - can't have the supplier waiting until the very end for their money!

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Rochell

4 months ago

I agree, A seems like the most practical option for progress payments.

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Jin

4 months ago

Yeah, that makes sense. Can't keep the supplier waiting until the end.

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Gretchen

4 months ago

I think A is the best answer, payments made at different stages of the contract.

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Mozell

5 months ago

I agree with Belen, progress payments are made at different stages of the contract.

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Carline

5 months ago

I agree, A is the correct answer here. Progress payments help keep the cash flow going during a long-term contract, rather than waiting until the very end.

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Katie

5 months ago

Option A definitely seems to be the best description of progress payments. It's all about those periodic payments linked to the progress of the work, not just a single lump sum at the end.

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