Cips examstopics cips Level 4 Diploma In Procurement And Supply L4m2 Reddit Questions by Jad q86 vce pdf

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Exam Name:	Defining Business Needs
Exam Code:	L4M2 Dumps
Vendor:	CIPS	Certification:	CIPS Level 4 Diploma in Procurement and Supply
Questions:	237 Q&A's	Shared By:	jad

Question 40

Which of the following is the best definition of target costing?

Options:

The net present cost of the purchase or project and all future revenues flowing from it discounted back to the present time.

The total of all costs in acquiring goods or services from the inception of the demand for them until their safe and satisfactory delivery at the point required.

The cost of a product after analysing its components step by step

A product cost estimate derived from a competitive market price.

Discussion

Question 41

A company is evaluating two investment projects: Project A and Project B. Project A has a high initial cost but generates substantial cash flows over time. Project B has a lower initial cost but generates modest cash flows consistently. The company's cost model indicates a payback period of three years for Project A and a payback of four years for Project B. Which of the following statements is correct regarding the cost models and cash flow profiling for these projects?

Options:

Project A has a shorter payback period, making it a quicker return on investment compared to Project B

Project A’s higher initial cost is a disadvantage, and its payback period should be extended for better profitability

Project B’s lower initial cost allows for faster profit realisation, making it the better investment choice

Project B’s modest and consistent cash flows make it a risky investment option due to a longer payback period

Discussion

Question 42

When analysing a market, the availability of substitute products or suppliers is the only competitive force to consider. Is this statement correct?

Options:

No, availability of substitutes is not a competitive market force

No, other forces include the threat of new entrants and bargaining strength of buyers and suppliers

Yes, substitute products and therefore cost is the source of all competition

Yes, it is the only competitive force relevant to procurement

Discussion

Question 43

Product development consists of various stages, including planning and analysis, design develop-ment, pre-production, production and maintenance. At which stages the opportunities for cost re-duction will be the greatest?

1. Planning stage

2. Pre-design stage

3. Detail design stage

4. Production stage

5. Logistics support stage

Options:

2 and 3 only

2 and 5 only

1 and 2 only

1 and 4 only

Discussion

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