Master CIPS L3M2 Exam with Reliable Practice Questions
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Which ISO standard describes quality as 'the degree to which a set of inherent characteristics fulfils requirements'?
Correct : A
The correct answer is ISO 9000 - this was based originally on the British Standard BS 5750.
ISO 14,001 is an environmental management standard.
ISO 19,000 is a management systems standard.
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Imagine that the Chief Executive of a UK bank attempted to learn the name of a whistleblower within the bank - the whistleblower had earlier reported wrongdoing within the bank to the state banking authorities anonymously. Trying to find the name of the whistleblower was a breach of the organisation's internal protocol which guaranteed anonymity to whistleblowers. Imagine the regula-tory authorities in both the UK and the US took action as a result. What is the most likely action which would be taken by the authorities?
Correct : A
This actually happened and the banking authorities in both the UK and the US fined the bank heavily.
Closing the bank down would be too Draconian a step; imprisoning the Chief Executive could hap-pen and others in the banking sector have been imprisoned for wrongdoing - a famous case of 'The NatWest Three' saw three managers of a UK bank extradited and imprisoned in the US.
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In a manufacturing business, there are two important materials budgets. One is called 'materials pur-chases budget' and the other is called 'materials XXX budget'. What is the missing word?
Correct : C
It's the 'materials usage budget'.
This budget would help monitor whether the usage of materials was in line with forecast (budget), or whether there was a variance.
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'I'm not really well up on ethics within organisations, especially within procurement. Where can I find some really good quality up-to-date information about ethics?' Choose one.
Correct : A
CIPS is keenly interested in procurement ethics, and you can find a wealth of information on the CIPS website as well as other CIPS publications, such as Supply Management magazine.
CIPS members are also encouraged to undertake the ethical training and test, also available online via the CIPS website.
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Thinking in accounting terms, when the cost does not match the budget figure, there could be said to be a:
Correct : C
Actual cost and budgeted costs may / will vary. Examples might include materials variances and labour variances.
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