CIPS L2 NC1 II

Which of the following are tasks required in the ‘Pre award phase’ of the purchasing cycle?

• A)Identification of needs and producing specification if required

• B)Expediting,reviewing quotations,gaining authorization and placing order.

• C)review quotations,gaining authorization and placing orders

• D)Assessing supplier performance and checking invoice details if required

which of the following reflects the sustainability principle of the ‘triple bottom line’

• A)Turnover,gross profit,net profit

• B)Decrease purchasing cost,increase value added,extended credit period

• C)Profitability,social accountability,environmental sensitivity

• D)Reduce stock,reduce staff overheads

Which of the following explains the actions involved as part of an efficient ’expenditing system’?

• A)Check the requirements for exports of goods from another country

  
  

• B)Maintaining contact with important suppliers to reduce the likelihood of problems with orders

• C)updating users on progress and ensuring speedy release of the purchase order

• D)Ensuiring invoices are checked and supplier payment is not delayed

Items that form part of the organistion’s end product are known as which of the following?

• A)MRO Supplies

• B)Direct supplies

  
  

• C)Indirect supplies

• D)Call-off supplies

TPP manufacturing Group is unhappy with the service it has received from its outsourced logistics

supplier.It is now bringing the function back in – house.This is known as which of the following:

• A)In sourcing

• B)Reverse engineering

• C)Sub –contracting

• D)Direct Marketing

For a motor manufacture,which of the following would constitute MRO suppliers?

33.For a retail organisation,direct supplies are products for onward sale to which of the following

• A)New factory

• B)Engine Components

  
  

• C)Photocopy paper

  
  

• D)Spares for equipment

For a retail organisation,direct supplies are products for onward sale to which of the following

• A) Customers

• B) Logistic providers

• C) Wholesale

• D) Freight forwarders

Which of the following organization sell goods on behalf of the manufacturer and earns

commission

• A)wholesalers

• B)Distributors

• C)Agents

• D)Retailers

The consideration of whether to use an external supplier or to undertake the work in-house is

known as which type of decision?

• A)Internal or external

• B)Inhouse or source

• C)Make or buy

• D)Outsource or buy

Which of the following can occur as a direct consequence of outsourcing

• A)In house knowledge is improved

• B)internal staff will increase

• C)Assets are removed from balance sheet

• D)Competitors will exit the market