Free Preparation Discussions
MENU
CIPS L4M2 Exam Questions
- Topic 1: Monitor specification creation by colleagues and other internal stakeholders/ Analyse how business needs influence procurement decisions
- Topic 2: Approaches to total costs of ownership/whole life cycle costing/ Interpret financial budgets for the control of purchases
- Topic 3: Identify opportunities to regulate short and longer term specifications/ Procurement’s role in developing a business case
- Topic 4: Provide guidance to internal stakeholders on implementation/ Implications of the business needs on the types of purchase
- Topic 5: Output or outcome, statement of work based specifications/ Types of market data that can provide information on costs and prices
- Topic 6: Identify sections of specifications for through life contracts/ Identify how costs and prices can be estimated for procurement activities
- Topic 7: Analyse the criteria that can be applied in the creation of a business case/ Availability of substitutes and threat of entry Understand market management in procurement and supply/ Compare the competitive forces that influence markets
- Topic 8: Understand the use of specifications in procurement and supply/ Analyse the different types of markets utilised by procurement and supply
- Topic 9: Identify the risks that can result from inadequate specifications and mitigation approaches/ Use information to prepare budgets or to negotiate prices
- Topic 10: Understand how to devise a business case for requirements to be sourced from external suppliers/ Producing estimated costs and budgets
Free CIPS L4M2 Exam Actual Questions
Note: Premium Questions for L4M2 were last updated On Mar. 30, 2025 (see below)
After a project, the procurement team at CLK Ltd meets up and summarises on the performance. They see that they actually spent $5,000 less than planned budget. The team tries to identifies why there is such difference. This activity is known as...?
The procurement team in the scenario is analysing the difference between the plan and actual spend. This activity is known as variance analysis. The sum of all variances gives a picture of the overall over-performance or under-performance for a particular reporting period. For each item, companies assess their favorability by comparing actual costs to standard costs in the industry.
For example, if the actual cost is lower than the standard cost for raw materials, assuming the same volume of materials, it would lead to a favorable price variance (i.e., cost savings). However, if the standard quantity was 10,000 pieces of material and 15,000 pieces were required in production, this would be an unfavorable quantity variance because more materials were used than anticipated.
- CIPS study guide page 57-58
- Variance Analysis - Learn How to Calculate and Analyze Variances (corporatefinanceinsti-tute.com)
LO 1, AC 1.4
Which of the following will help the bargaining strength of a buyer?
The buyer has the option to make the product in-house
There are a limited number of suppliers available to the buyer
The buyer's switching costs are high
The buyer's spend is a high proportion of the supplier's revenue
1 (Make in-house): The ability to produce in-house reduces dependency on suppliers, strengthening buyer power.
4 (High spend proportion): A high proportion of spend gives buyers leverage over suppliers who are reliant on their revenue.
Limited suppliers (2) and high switching costs (3) reduce buyer bargaining power. Reference: CIPS Level 4, Market Power Analysis.
Which competitive forces influence markets in our modern environment?
The bargaining strength of suppliers and buyers is a key factor influencing market competitiveness, as outlined in frameworks like Porter's Five Forces. These forces dictate pricing, supply availability, and value delivery. Reference: CIPS Level 4, Market Analysis and Competitive Forces.
Buyers can ascertain the prices by examining information provided by primary and secondary sources of market data. Which of the following is a secondary source of market data?
Price comparison websites are secondary sources as they aggregate data collected from multiple suppliers. Primary sources (like RFQs and brochures) come directly from the supplier. Reference: CIPS Level 4, Market Data Analysis.
Category buyer Raheem has been tasked with receiving innovative bids from coaching and development service providers. How can he achieve this? Select TWO that apply.
A (Early supplier involvement): Engaging suppliers early fosters innovation by leveraging their expertise in developing solutions.
D (Outcome-based specification): Focusing on outcomes rather than rigid inputs encourages creative and flexible proposals.
Conformance specifications (C) restrict innovation, and standards (E) limit supplier flexibility. Reference: CIPS Level 4, Innovation in Procurement Specifications.
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Sharen
26 days agoBrice
2 months agoKimbery
2 months agoNieves
3 months agoRoyce
3 months agoEllen
4 months agoNathan
4 months agoCraig
4 months agoTanja
4 months agoNaomi
5 months agoSkye
5 months agoTora
5 months agoJoni
5 months agoDarrin
6 months agoDelbert
6 months agoFelicidad
6 months agoElbert
6 months agoMonte
6 months agoJudy
7 months agoPaola
7 months agoRoslyn
7 months agoJame
8 months agoGiovanna
8 months agoGlendora
9 months agoVan
10 months agoSilvana
10 months agoAntione
10 months agoMarnie
10 months agoFernanda
10 months ago