Master CIPS L6M5 Exam with Reliable Practice Questions
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What is the purpose of the Project Team at Glitter Kitten Ltd?
Answer Options:
Correct : B
The team focuses on product quality and cost reduction, which defines Value Engineering (p.2.1).
Option A (CPA) is a scheduling tool.
Option C (Negotiation) focuses on contracts, not product quality.
Option D (SCM) is supply chain optimization, not product design. [P.2.1]
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Glitter Kitten Ltd negotiates a contract with Paw Ltd (new supplier).
Q: What pricing mechanism is best for visibility into supplier costs and margins?
Answer Options:
Correct : A
Open-Book Costing (p.2.1) ensures visibility into supplier costs and margins, which matches the CEO's request.
Cost Reimbursable (B) covers unknown costs, but does not provide transparency.
Bottom-Up Pricing (C) estimates project costs from smaller parts.
Activity-Based Costing (D) assigns costs per activity, but does not guarantee supplier transparency. [P.2.1]
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Which of the following statements is true of a business that operates in a 'low-context culture' country?
Correct : C
Communication is direct and meetings are therefore shorter. This is from p. 182:
'In low-context cultures, communication is much more direct and explicit, which can result in shorter meetings and a reliance on rules to govern procedures.' CIPS gives the UK and USA as examples of a low-context culture.
Domain: 3.2
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Under what circumstances can Specific Performance be used to compensate an innocent party for a contractual breach? Select all that apply.
Correct : B, C
Specific performance is an alternative remedy to paying damages (i.e., money). It is used when money isn't going to help solve the situation---examples include the sale of land, rare or customized goods.
Option A is incorrect as specific performance can only be awarded if the injured party has 'clean hands' and fulfilled all their obligations.
Option D is incorrect as specific performance is often decided by the court.
Option E is incorrect as specific performance would be used instead of liquidated damages.
See p.128-132 in the study guide.
Domain: 2.3
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Which of the following describes tacit knowledge? Select all that apply.
Correct : E
Tacit knowledge is knowledge that is difficult to transfer or explain. The other four options describe explicit knowledge. Tacit knowledge is usually unwritten, like the history of a relationship between a buyer and supplier or why a company does things in a certain way.
Domain: 2.4
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