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  1. Home
  2. CIPS Certification
  3. L3M2 Exam
  4. CIPS.L3M2.v2024-08-10.q33 Dumps
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Question 1

It is thought that the cause of a negative variance in the materials budget is the poor negotiation skills of procurement staff. Which of the following (select two) would be a move in the right direc-tion to remedy this situation?

Correct Answer: C,D
Surety of supply is not in question; cost of supply is.
Sacking the Head of Procurement is probably a rash move, unless there is much more going on.
Using competition, and ensuring effective skills are in place would seem to be good options in the circumstances.
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Question 2

The act of secretly and illegally stealing funds which have been placed in the individual's trust, or money belonging to a person's employer:

Correct Answer: D
This is a definition of embezzlement.
The other terms shown as possible answers are also part of the syllabus for this subject.
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Question 3

The price / cost ...

Correct Answer: A
The price / cost iceberg.
The notion that when you buy something for a price, only part of the total cost has been exposed. a potentially very significant chunk of cost remains unseen, 'below the waterline'.
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Question 4

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.

Correct Answer: D
As less has been spent than budgeted, the variance is favourable.
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Question 5

Key Performance Indicators could be said to be:

Correct Answer: B
SMART
Specific, measurable, achievable, realistic, timebound or similar.
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