M2 Paper 1 quick revision Flashcards
(55 cards)
1
Q
- The three types of purchase are modified rebuy, new purchase and which other?
a. straight re-buy
b. CAPEX
c. Blanket order
d. Framework agreement
A
a. straight re-buy
2
Q
2 Which of the following use the most procurement resource?
a. Framework revision
b. New task
c. Modified re-buy
d. OPEX requirement
A
b. New task
3
Q
- Business cases can either?
a. Exploit an opportunity or solve a problem
b. Exploit a problem and solve an opportunity
c. Exploit a procurement and solve an objective
d. Exploit an outcome and solve a possibility
A
a. Exploit an opportunity or solve a problem
4
Q
- A justification for undertaking an action is also known as what?
a. A strategy plan
b. A service level agreement
c. A business plan
d. A bottleneck purchase
A
c. A business plan
5
Q
- What is the term used to evaluate how long it takes an organisation to see a profit after procuring a CAPEX item?
a. Return on investment
b. Return on inflation
c. Return on information
d. Return on investigation
A
a. Return on investment
6
Q
- Networking and attending supplier meetings are a way of gathering what type of data?
a. Secondary
b. Tertiary
c. Public
d. Primary
A
d. Primar
7
Q
- Rent and insurance are examples of what?
a. Fixed costs
b. Variable costs
c. Direct costs
d. Unexpected costs
A
a. Fixed costs
8
Q
- Costs that are attributable to a single unit of sale are known as?
a. Indirect costs
b. Variable costs
c. Fixed costs
d. Direct costs
A
d. Direct cost
9
Q
- Which costs do not vary with the level of output?
a. Fixed
b. Variable
c. Direct
d. Indirect
A
a. Fixed
10
Q
- Benchmarking is best described as:
a. Comparing a product or service to the best in class
b. Comparing a price to the lowest in class
c. Comparing a service to the best cost in class
d. Comparing a product or service to the highest in class
A
a. Comparing a product or service to the best in class
11
Q
- Which of the following are the four types of benchmarking?
a. Internal, external, operational, directional
b. Internal, functional, operational, generic
c. Internal, competitive, functional, generic
d. Internal, generic, operational, functional
A
c. Internal, competitive, functional, generic
12
Q
- When should competitive bidding be conducted?
a. When there is an adequate number of suppliers in the market
b. When there is a monopoly situation
c. When there is an unclear specification and budget
A
a. When there is an adequate number of suppliers in the market
13
Q
- Comparing a business to another that produces the same products or services is known as?
a. Functional benchmarking
b. Generic benchmarking
c. Competitive benchmarking
A
c. Competitive benchmarking
14
Q
- Lead time, quality, training, disposal and maintenance are attributable to?
a. Total cost of acquisition
b. Total cost of ownership
c. Total cost of purchasing
A
b. Total cost of ownership
15
Q
- The whole life model is also known as?
a. Total cost of ownership
b. Total cost of sourcing
c. Total cost of acquisition
d. Net Present Value
A
a. Total cost of ownership
16
Q
- Which model can be used to evaluate external factors?
a. Mendelow Stakeholder Matrix
b. Porters Five Force
c. Steeple
d. Kraljic Matrix
A
c. Steeple
17
Q
- What is the term used for a team of individuals that work together to reach a common goal?
a. Stakeholder team
b. Cross-functional team
c. Facilities team
A
b. Cross-functional team
18
Q
- LEAN manufacturing centres on removing what from the supply chain?
a. Cost
b. Waste
c. Quality
d. Time
A
b. Waste
19
Q
- Which of the following is a set of tools and processes for improvement introduced by Motorola in 1980.
a. Kraljic Matrix
b. Quality control
c. Six Sigma
d. MRO
A
c. Six Sigma
20
Q
- The name for the work done to evaluate the financial benefits against the costs to achieve them is?
a. Cost benefit analysis
b. Price cost analysis
c. Supply cost analysis
d. Target Costs analysis
A
a. Cost benefit analysis
21
Q
- Risk is evaluated against which two criteria?
a. Impact and frequency
b. Impact and likelihood
c. Likelihood and importance
d. Likelihood and effectiveness
A
b. Impact and likelihood
22
Q
- Planning, controlling and decision making are the activities associated with?
a. Sales
b. Stock takes
c. Budgets
d. ERP
A
c. Budgets
23
Q
- Money coming into and going out of an organisation is known as?
a. Profit
b. Revenue
c. Cashflow
d. Dividends
A
c. Cashflow
24
Q
- Costs other than direct costs are known as?
a. Variable costs
b. Overheads
c. Fixed costs
d. Target costs
A
b. Overheads
25
25. The amount an asset reduces by each year is known as?
a. Reduction
b. Interest
c. Depreciation
d. Loss
c. Depreciation
26
26. Dividends are paid to whom?
a. Stakeholders
b. Debtors
c. Shareholders
d. Customers
c. Shareholders
27
26. Dividends are only paid when?
a. An organisation makes a profit
b. An organisation is acquired
c. An organisation is involved in a merge
d. An organisation reaches its sales target
a. An organisation makes a profit
28
27. Costs that are 100% attributable to an end product or service are?
a. Direct costs
b. Fixed costs
c. Indirect costs
d. Variable Costs
a. Direct costs
29
28. Revenue is best described as?
a. The profit an organisation makes
b. The amount of money an organisation generates
c. The income generated from normal business activity
d. Interest payable to banks
c. The income generated from normal business activity
30
29. The promotion of co-ordination, accountability and motivation of staff are benefits of?
a. Forecasting
b. Budgeting
c. Selling
d. Manufacturing
b. Budgeting
31
30. Which model can be used to identify business needs?
a. RACI
b. PESTLE
c. RAQSCI
d. Porter Value Chain
c. RAQSCI
32
31. When might procurement be most likely to consider creating a business case?
a. When a contract is coming up for renewal
b. When a new entrant comes to market
c. When a supplier makes a large profit
d. When sales have reduced
a. When a contract is coming up for renewal
33
32. Long term strategy consideration should do what with the organisation?
a. Assist
b. Adapt
c. Align
d. Adopt
c. Align
34
33. Managers will be keen to understand when they will start to receive a profit after an investment. What is this known as?
a. Return on investment
b. Dividend payment
c. Capital gains tax
d. Discounted cashflow
a. Return on investment
35
34. What will be increased by improving productivity in an organisation?
a. Outcomes
b. Outputs
c. Objectives
c. Operations
b. Outputs
36
35. Which of the following are examples of primary data?
a. Trade magazines and journals
b. Government statistics, newspapers and podcasts
c. Supplier meetings, networking and focus groups
d. Website and Product Catalogues
c. Supplier meetings, networking and focus groups
37
36. Which document can be sent out to potential suppliers but with no intention to place an order?
a. Request for information
b. Request for quotation
c. Request for credit
d. Letter of credit
a. Request for information
38
37. Utilities and rent are examples of which type of costs?
a. Indirect
b. Fixed
c. Variable
d. Target
a. Indirect
39
38. Fixed costs do not change with the amount of what within an organisation?
a. Profit
b. Output
c. Defects
d. Value
b. Output
40
39. Which two are stages from the product life cycle diagram?
a. Maturity, penetration
b. Growth, maximum
c. Maturity, growth
d. Growth, peak
c. Maturity, growth
41
40. Price increases, quality concerns and relationship breakdown may encourage a buyer to do what?
a. Switch suppliers
b. Switch product
c. Switch services
d. Switch parts
a. Switch suppliers
42
41. Obtaining a cost reduction through increasing the volume is known as?
a. Cost avoidance
b. Economies of scale
c. Price saving
d. Cost Estimating
b. Economies of scale
43
42. What are the three types of specification?
a. Technical, outcome and performance
b. Conformance, output and technical
c. Technical, performance and conformance
d. Design, Statement of works, conformance
c. Technical, performance and conformance
44
43. Which of the following is an example of a conformance specification?
a. A drawing
b. A standard
c. A recipe
d. An output
c. A recipe
45
44. Which of the following is an example of a technical specification?
a. A recipe
b. An outcome
c. A standard
d. A sample
c. A standard
46
45. Which of the following are types of performance specifications?
a. Statement of work, output and outcome
b. Scheme of work, output and outcome
c. Standard of work, outcome and scheme of work
d. Design, output and outcome
a. Statement of work, output and outcome
47
46. Which type of specification leaves the supplier most opportunity to innovate?
a. Technical
b. Performance
c. Conformance
d. Design
b. Performance
48
47. A benefit of early supplier involvement is?
a. Shared resources
b. Loss of intellectual property
c. Reliance on the supplier
b. Shared equipment
a. Shared resources
49
48. A negative aspect to early supplier involvement is?
a. Loss of intellectual property
b. Time saving
c. Shared resources
d. Shared equipment
a. Loss of intellectual property
50
49. What could be the cause of money being wasted to rectify an incorrect product?
a. An over specified or under specified need
b. An over specified need
c. An under specified need
a. An over specified or under specified need
51
50. If a need is over specified which factors could occur?
a. Poor competition of supply and limited offers
b. Abundance of suppliers and prices
c. Guaranteed best price and quality
d. An innovative solution
a. Poor competition of supply and limited offers
52
51. What is the first stage in the risk process
a. Test the risk
b. Check the risk
c. Identify the risk
d. Mitigate the risk
c. Identify the risk
53
52. When creating a risk assessment which two criteria are used to plot the results against?
a. Impact and feedback
b. Impact and likelihood
c. Impact and result
d. Severity and feedback
b. Impact and likelihood
54
53. Risks should be allocated an “????” to ensure that they are managed correctly
a. Mitigation
b. Owner
c. Reference
d. Register
b. Owner
55
54. A “???” is a document that records key parts of the project and acts as a vehicle to collect the necessary approvals
a. Product initiation document
b. Project initiation document
c. Purchasing initiation document
d. Part initiation document
b. Project initiation document
