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| Section | Weight | Objectives |
|---|---|---|
| Devise a business case for requirements sourced externally | 20-25% | - Influence of business needs on procurement decisions
|
| Market management in procurement and supply | 20-25% | - Analyse market structures and competition
|
| Legal and regulatory considerations | 10-15% | - Legislation affecting requirements definition
|
| Use specifications in procurement and supply | 20-25% | - Advantages and limitations of specification types
|
| Stakeholder management in defining needs | 15-20% | - Identify and classify stakeholders
|
Currently, the L4M2 exam's passing score is 60% and the registration fee is £199 / $250 USD. Both are CIPS's figures and subject to revision — verify them on the official site before you schedule.
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The CIPS Defining Business Needs blueprint covers these core domains:
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Which of the following are typically included in a conformance specification? Select TWO that apply.
Correct Answer: C,D 🗳️
Explanation: Only visible for ValidTorrent members. You can sign-up / login (it's free).
The procurement team of an IT hardware manufacturer has been set a target by senior management to reduce the rates paid to the sole supplier of a new and innovative power-saving battery. Which action should the procurement team first consider?
Correct Answer: D 🗳️
Explanation: Only visible for ValidTorrent members. You can sign-up / login (it's free).
Which of the following are the causes of material cost variance?
1. The buyer updates purchase-to-pay system to track payment and delivery
2. An unprocessed goods received note is missing
3. The employees must work overtime to catch up with the customers ' orders
4. The purchase is made in emergency
Correct Answer: D 🗳️
Explanation: Only visible for ValidTorrent members. You can sign-up / login (it's free).
The main benefit of using standards in a specification is ...
Correct Answer: D 🗳️
A procurement manager is writing a conformance specification for a non-core component. She thinks that if the requirements in specification are higher than ISO standards, her company can achieve greater cost- savings. Is the procurement manager's opinion correct?
Correct Answer: A 🗳️
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