Free Ethical Procurement and Supply Exam L3M2 Exam Practice Test

‘The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:

• Short life
• Long life
• After life
• Shelf life

‘A product will not survive commercially unless it satisfies XXXX needs’. Which one of the follow-ing is the most important fit for XXXX?

• Customer
• Manufacturer
• Sales and marketing
• Government agency

Thinking in accounting terms, when the cost does not match the budget figure, there could be said to be a:

• Discrepancy
• Variety
• Variance
• Error

The Profex textbook for this subject, states that ‘specifications are said to be ‘the heart of the con- tract’. The book then goes on to state that goods supplied must be ‘fit for…’

• A King
• Usage
• The requirement
• Purpose

Van Weele wrote that ‘quality is the degree in which XXXX requirements are met. We speak of a quality product or quality service when supplier and XXXX agree on requirements and those re- quirements are met’.

• Replace XXXX.
• Specifier
• Designer
• Customer
• Manufacturer

A term used to describe preparatory activities undertaken after a contractor has been appointed, but before they have commenced work. Often used in projects, construction or management consultan- cy

• work.
• Globalisation
• Synchronisation
• Mobilisation
• Improvisation

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.

• Is the variance:
• None of the above?
• Adverse?
• Favourable?

Cause and effect diagrams, also known as Ishikawa diagrams, are sometimes also known, because of their shape, as:

• Funny bone
• Wishbone
• Tailbone
• Fishbone

The abbreviation ‘KPI’ stands for:

• Key performance inducement
• Key procurement indicator
• Key performance improvement
• Key performance indicator Key personnel insurance

Which two of the following would be unlikely to increase value for money for an organisation?

• Attending social events at supplier's expense
• Use of value analysis or value engineering
• Standardisation of components
• Accepting a late bid in a tender process