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Sample Questions L3 Module 3

This document provides 20 sample exam questions for the CIPS Level 3 – Advanced Certificate in Procurement and Supply Operations Contract Administration assessment. Each question includes the learning outcome and assessment criteria being tested. The questions cover a range of topics within contract administration including key performance indicators, negotiation techniques, tendering processes, contract terms, and supplier performance monitoring. The correct answers are provided below each question.

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2K views7 pages

Sample Questions L3 Module 3

This document provides 20 sample exam questions for the CIPS Level 3 – Advanced Certificate in Procurement and Supply Operations Contract Administration assessment. Each question includes the learning outcome and assessment criteria being tested. The questions cover a range of topics within contract administration including key performance indicators, negotiation techniques, tendering processes, contract terms, and supplier performance monitoring. The correct answers are provided below each question.

Uploaded by

Hus Nia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CIPS Level 3 – Advanced Certificate in Procurement and

Supply Operations

Contract Administration
[L3M3]

Sample Exam Questions (Objective Response)

The correct answer will be listed below each question

L3M3 Sample Questions April 2020


Q1. A performance measure that is important to the organisation, business unit or individual who is being
measured is termed a …

a. key practical indicator


b. key performance indicator
c. key primary indicator
d. key positional indicator

LO: 1
AC: 1.2
Correct answer: B

Q2. Competitive pricing with suppliers can be achieved through …

a. quality standards
b. building supplier relationships
c. value added analysis
d. monitoring prices and obtaining quotations

LO: 2
AC: 2.1
Correct answer: D

Q3. Drag and drop the correct option into the blank space.

A purchase is completed to meet immediate requirements, rather than for stock or to


meet future demand.

spot, quick, one-off, long term

LO: 1
AC: 1.1
Correct answer: spot

Q4. In order to achieve effective tendering a buyer must initially …

a. forecast consumer demand


b. carry out market research
c. establish a JIT philosophy
d. adopt TQM

LO: 3
AC: 3.1
Correct answer: B

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q5. A supplier offers low value non-complex goods to the organisation. The buyer may adopt which form
of negotiation in these circumstances?

a. Disruptive
b. Inclusive
c. Open
d. Closed

LO: 2
AC: 2.2
Correct answer: A

Q6. Drag and drop the correct option into the blank space.

is a process through which “each party tries to achieve their goals in the context of the
relationship with the other party”.

Alignment, Collaborating, Synchronising, Negotiating

LO: 2
AC: 2.2
Correct answer: Negotiating

Q7. To ensure that the organisation receives value for money it will use which form of pricing
mechanism?

a. Competitive
b. Optimal
c. Agreement
d. Commercial

LO: 2
AC: 2.1
Correct answer: A

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q8. When evaluating a tender the organisation will invariably look for the most …

a. economically viable tender


b. ecologically friendly tender
c. believable tender
d. cheapest tender

LO: 3
AC: 3.3
Correct answer: A

Q9. Drag and drop the correct option into the blank space.

are included in the business case to highlight value for the organisation.

Benefits, Time constraints, Milestones, Financial costings

LO: 1
AC: 1.4
Correct answer: Benefits

Q10. In order to manage contractual risk the organisation may develop a …

a. quality management policy


b. risk register
c. supplier appraisal
d. market analysis report

LO: 4
AC: 4.3.1
Correct answer: B

Q11. What is the name for a contract that runs for an agreed period of time and allows the buyer to
request delivery of products throughout its duration at a set price.

a. Spot purchase
b. Framework agreement
c. Call off order
d. Panel contract

LO: 1
AC: 1.1
Correct answer: C

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q12. Offer, acceptance, consideration, intention and “xxxxxx” are the five elements of a legally binding
contract.

a. Capacity
b. Capability
c. Control
d. Coercion

LO: 1
AC: 1.2
Correct answer: A

Q13. A select from drop down agreement is a simple framework agreement with more than one supplier.

a. Contract
b. Quotation
c. Panel
d. Spot

LO: 1
AC: 1.1
Correct answer: C

Q14. In an integrative approach to negotiation, what is the ideal outcome?

a. Win-win
b. Win-lose
c. Lose-lose
d. Lose-win

LO: 2
AC: 2.2
Correct answer: A

Q15. What is the name for terms that do not have to be specifically written into a contract to exist?

a. Express terms
b. Implied terms
c. Legal terms
d. Bespoke terms

LO: 3
AC: 3.2
Correct answer: B

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q16. Price select from drop down is the term used to describe prices that change both upwards and
downwards in an unpredictable manner over a short period of time.

a. Increase
b. Decrease
c. Volatility
d. Elasticity

LO: 2
AC: 2.3
Correct answer: C

Q17. What is the five letter acronym used to describe a back-up plan that can be referred to in a
negotiation?

a. BATNA
b. BATNC
c. BETNA
d. BANCA

LO: 2
AC: 2.3
Correct answer: A

Q18. The supplier preferencing model contains which four quadrants?

a. Nuisance, develop, expand, core


b. Nuisance, direct, exploit, core
c. Nuisance, develop, exploit, core
d. Nuisance, dictate, export, core

LO: 3
AC: 3.1
Correct answer: C

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q19. Open and restricted are two types of what?

a. Quotation
b. Tender
c. Contract
d. Specification

LO: 3
AC: 3.1
Correct answer: B

Q20. Julian has some KPIs to monitor his supplier’s performance. One KPI is “deliveries must not contain
more than 2% defects”. What type of KPI is this?

a. Quantitative
b. Subjective
c. Qualitative
d. Objective

LO: 4
AC: 4.2
Correct answer: A

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question

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