CIPS L4M2 Defining Business Needs Online Training
CIPS L4M2 Online Training
The questions for L4M2 were last updated at Apr 25,2025.
- Exam Code: L4M2
- Exam Name: Defining Business Needs
- Certification Provider: CIPS
- Latest update: Apr 25,2025
Which type of specification is less time-consuming to develop?
- A . Outcome-based specification
- B . Design specification
- C . Conformance specification
- D . Technical drawings
Which type of specification is less time-consuming to develop?
- A . Outcome-based specification
- B . Design specification
- C . Conformance specification
- D . Technical drawings
Which type of specification is less time-consuming to develop?
- A . Outcome-based specification
- B . Design specification
- C . Conformance specification
- D . Technical drawings
Which type of specification is less time-consuming to develop?
- A . Outcome-based specification
- B . Design specification
- C . Conformance specification
- D . Technical drawings
Low switching costs
- A . 2 and 4 only
- B . 3 and 4 only
- C . 2 and 3 only
- D . 1 and 4 only
A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company’s spend.
Is that concern justified?
- A . No, because the broader range of spend category can increase the value of the contract and the buyer may get volume discount
- B . Yes, because the consolidation may create a large contract that costs more than placing each purchase order
- C . No, because the consolidation will help the supplier to shorten deliver time.
- D . Yes, because the suppliers can’t provide a broader range of products and they will fail to deliver
This is the information on an organisation’s activities over the past year
• Sale were $5,000,000. The value of accounts receivable was $450,000 at the start of the year and $525,000 at the end of the year
• The value of direct costs was $2,500,000 and 75% of this was bought on credit
• Indirect costs were $3,000,000 and 25% of this was bought on credit
• During the year the organization spent $1,500,000 on new assets and sold $150,000 of old assets. $1,000,000 of the spend on assets was funded by a bank loan
• The organization declared a dividend of $200,000 at the end of the year but this was not paid for another two months
• Opening balance was $175,000
Which of the following is the bank balance of that organization at the end of the year?
- A . $1,675,000
- B . $1,875,000
- C . $1,700,000
- D . $2,025,000
When procuring an IT equipment, at which stage the buyer’s expectations are translated into a technical specification?
- A . Installation
- B . Design
- C . In-service support
- D . Customer support
Interserve is a construction contractor in UK. When receiving a huge and complex project, Inter-serve’s procurement manager assesses the risks by quantifying them and recommends other stake-holders to plan mitigating actions. Is the procurement manager’s action justified?
- A . No, because no risks can be quantified, therefore the procurement manager’s action is impossible.
- B . Yes, because procurement manager needs to assess the risks to prioritise and mitigate any potential risks
- C . Yes, because all the risks should be quantified and eliminated completely before they happen
- D . No, because embedding the risk into pricing will decrease the company’s competitiveness
Which of the following are considered as direct costs in a construction company? Select TWO op-tions
- A . Raw materials
- B . An employee is hired to work on a project, either exclusively or for an assigned number of hours
- C . The materials and supplies needed for the company’s day-to-day operations.
- D . Advertising and marketing communication
- E . Clerical assistants who maintain the office
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