NS
Level 2 Certificate in Procurement and
Supply Operations
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NC3 -Procurement and
supply processes
EXAM EXEMPLAR QUESTIONS
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MULTIPLE CHOICE QUESTIONS AND ANSWERS
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The correct answer will be identified as the [KEY]
Q1 Question
Which of the following terms describes an agreement where a supplier agrees to provide an
estimated quantity of items over an agreed period at an agreed price?
(a) Blanket order [KEY]
(b) Spot order
(c) Major works order
(d) Fixed price order.
Learning outcome: 1.1
CIPS study guide reference: Chapter 1, section 2.5
Q2 Question
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Which of the following defines a ‘fixed price contract’?
Answers
(a) A contract where the price has been quoted in writing by the supplier
(b) A contract where the price may be varied using an agreed formula
(c) A contract where the price is the same as for previous orders
(d) A contract where the price cannot be varied between the purchaser and
seller. [KEY]
Learning outcome: 1.2
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CIPS study guide reference: Chapter 2, section 1.5
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Q3 Question
An organisation will issue a ‘restricted tender’ to which of the following types of supplier?
Answers
(a) International suppliers
(b) Pre-qualified suppliers [KEY]
(c) Suppliers based in the organisation’s local area
(d) Suppliers not used in the past.
Learning outcome: 1.3
CIPS study guide reference: Chapter 3, section 2.12
Q4 Question
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During which of the following stages of the purchasing cycle is Internet based research used?
Answers
(a) Measuring a supplier’s performance
(b) Agreeing the terms of the contract
(c) Receiving goods from a supplier
(d) Sourcing the supply market. [KEY]
Learning outcome: 2.1
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CIPS study guide reference: Chapter 4, sections 1.4 and 2.1
NC3 Exam Exemplar Questions Mar2013
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Q5 Question
Which of the following is a source of financial information about suppliers?
(a) Market research companies
(b) Credit rating agencies [KEY]
(c) Chambers of commerce
(d) Debt collection agencies.
Learning outcome: 2.2
CIPS study guide reference: Chapter 5, section 2.1
Q6 Question
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Which of the following defines the term ‘intranet’?
Answers
(a) An information network whose use is restricted to internal users [KEY]
(b) A search engine that allows users to access the World Wide Web
(c) An information network which any external users can access
(d) A web site that provides answers to frequently-asked questions.
Learning outcome: 2.3
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CIPS study guide reference: Chapter 4, sections 2.3 and 2.4, Chapter 6, sections 1.1 and 1.3
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Q7 Question
Which of the following provides the purchaser with information of the user’s specific requirements?
(a) e-notice
(b) e-requisition [KEY]
(c) e-contract
(d) e-catalogue.
Learning outcome: 3.1
CIPS study guide reference: Chapter 7, section 2.1
Q8 Question
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Which of the following types of record are held in a purchase ledger?
Answers
(a) Records of stock usage
(b) Records of payments received from customers
(c) Records of suppliers’ quotations
(d) Records of payments made to suppliers. [KEY]
Learning outcome: 3.2
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CIPS study guide reference: Chapter 8, section 1.34
NC3 Exam Exemplar Questions Mar2013
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Q9 Question
Which of the following is the earliest stage in the purchasing cycle?
(a) Award the contract
(b) Negotiate best value
(c) Define the need [KEY]
(d) Source the market.
Learning outcome: 3.3
CIPS study guide reference: Chapter 9, section 1.2
Q10 Question
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At which of the following stages of the purchasing cycle is the technique of ‘vendor rating’ used?
Answers
(a) Measuring supplier performance [KEY]
(b) Preparing the specification
(c) Receiving goods from suppliers
(d) Identifying new sources of supply.
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Learning outcome: 3.3
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CIPS study guide reference: Chapter 9, section 5.17
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