Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CIPS
  5. L5M6

CIPS L5M6 Exam
Category Management (Page 3 )

Updated On: 1-Feb-2026
Page 3 of 20
PDF with 92 Questions

Workshops, safety facilities, and design engineers are indirect costs associated with which industry?

  1. Construction
  2. Retail
  3. Services
  4. Agriculture

Answer(s): A

Explanation:

In construction, indirect costs include items like workshops, safety facilities, and design engineers. These are necessary for operations but not directly tied to a single output.

[Ref: CIPS L5M6 Study Guide, p.90 ­ Indirect cost examples by industry]



Which category of spend item would be most suitable to purchase through an e-auction?

  1. Bottleneck
  2. Leverage
  3. Strategic
  4. Non-critical

Answer(s): B

Explanation:

Leverage items [low supply risk, high financial impact] are best suited for e-auctions. Buyers can use competitive bidding to drive down prices when multiple suppliers exist.

By contrast:

Bottleneck items [low value, high supply risk] are not suited as choice is limited.

Strategic items require partnership and collaboration, not price-only competition.

Non-critical items don't justify the effort of auctions.

[Ref: CIPS L5M6 Study Guide, p.97 ­ Kraljic Portfolio Matrix]



ABC Ltd wishes to ensure compliance across its supply chain.
Which of the following are steps that can be taken to ensure compliance with regulations and standards including CSR? [Select TWO]

  1. Only work with large suppliers who have a CSR policy
  2. Make ethics and compliance a priority when qualifying new suppliers
  3. Communicate the company's values across the supply chain
  4. Do not work with suppliers in low-cost countries

Answer(s): B,C

Explanation:

Making ethics and compliance a priority [B] ensures supplier selection considers regulatory and social responsibility aspects.

Communicating values across the supply chain [C] builds alignment and accountability.

A and D are incorrect because having a CSR policy doesn't guarantee practice, and low-cost country sourcing does not automatically mean non-compliance.

[Ref: CIPS L5M6 Study Guide, p.107 ­ Ensuring compliance in supply chains]



Volatile inflation rates are a risk that can affect any business.
Which STEEPLED factor would this fall under?

  1. Political
  2. Ethical
  3. Socio-Cultural
  4. Economic

Answer(s): D

Explanation:

Inflation is directly linked to the Economic factor within STEEPLED. It affects costs, purchasing power, and business profitability.

[Ref: CIPS L5M6 Study Guide, p.109 ­ STEEPLED analysis factors]



In a marketplace where there is a large number of suppliers, which of the following is true?

  1. There is low rivalry
  2. There is a low barrier to entry
  3. Buyer power is strong
  4. Buyer power is weak

Answer(s): C

Explanation:

When many suppliers exist, buyers have multiple options, increasing their bargaining power. Suppliers must compete for contracts, shifting power toward the buyer.

[Ref: CIPS L5M6 Study Guide, p.112 ­ Porter's Five Forces: Buyer Power]



Viewing page 3 of 20
Viewing questions 11 - 15 out of 92 questions



Post your Comments and Discuss CIPS L5M6 exam prep with other Community members:

Join the L5M6 Discussion