L4M2 Practice Exam Questions and Answers

Procurement should work closely with colleagues in accounts when creating an annual budget. This is because the budget will help the company ...

A procurement team is categorising their purchased items into four quadrants of Kraljic's supply chain portfolio matrix. They realise that there are some low-value items which come from very few suppliers in the market. The organisation is critically dependent on these suppliers. The team plans to reduce the dependence by finding alternative sources. Is this a right course of action?

Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:

Which kind of these following costs belong to fixed costs? Select TWO that apply.

When analysing a market, the availability of substitute products or suppliers is the only competitive force to consider. Is this statement correct?

Due to the growth of consumer electronics market, semiconductor industry develops exponentially. However, the industry is dominated by a dozens of manufacturer. Chipset need to be built in factories with highly controlled environments. New chip factories cost billions of dollars and can take two years to build. Right now, factories are running at full capacity, which produce almost perfect yields, meaning basic chipset can be made for less than a dollar and more advanced versions for not much more. What are the barriers to new entrants in the semiconductor industry?

1. Poor industry growth

2. High set-up costs

3. Economies of scale

4. Low switching costs

Which of the following would be considered to be direct costs? Select TWO that apply:

Which of the following specific markets is most likely to have product shortage by nature?

What is the contribution of marketing function to the development of specification?

A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long period, the costs of materials can fluctuate widely. The procurement manager suggests that the pricing structure should be able to cover the supplier's costs plus 10% markup on total costs. This arrangement is known as...?