Free Ethical Procurement and Supply Exam L3M2 Exam Practice Test

‘Value engineering is a structured approach to increasing the value obtained from a product by of- fering the same level of XXXXX at a lower cost’.What is XXXXX?

• Functionality
• Service
• Applicability
• Practicality

The Pareto Principle, broadly speaking, is also known as (choose two):

• ABC Analysis
• The Rule of Three
• The 80-20 Rule
• Value Analysis

A chart of the concept of 'economies of scale' would have two axes. Which two?

• Price per unit
• Cost per unit
• Scale of operations
• Economies of operation

‘A high degree of skill or expertise’

• Proficiency
• Efficiency
• Deficiency
• Effectiveness

Use of competition is most obviously going to influence which of the following ‘rights’?

• Revenue
• Time
• Price
• Place

A situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity, is called:

• Conflict of interest
• Shared interests
• Split the difference
• Double indemnity
• Double whammy
• Conflict resolution

The abbreviation ‘KPI’ stands for:

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

Select the two words which explain least well why the procurement of services can be more chal- lenging than the procurement of physical products:

• Intangible
• Variable
• Permeable
• Inseparable
• Perishable
• Unimaginable

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

• Funny bone
• Wishbone
• Tailbone
• Fishbone

‘In any series of elements to be controlled, a selected small factor in terms of number of elements almost always accounts for a large factor in terms of effort’. Which well-known principle is being described here?

• Plato
• Machiavelli
• Pareto
• Socrates