Workshops, safety facilities, and design engineers are indirect costs associated with which industry?
Answer(s): A
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?
Answer(s): B
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]
Answer(s): B,C
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?
Answer(s): D
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?
Answer(s): C
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]
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