Cips L2M5
Cips L2M5
Cips L2M5
Operations
a. work in process
b. work in progress
c. work in purchase
d. work in procurement
LO: 1
AC: 1.1
Correct answer: B
LO: 1
AC: 1.1
Correct answer: A
Q3. Hannah has set up an ordering system that has products arriving at the warehouse door one hour before
they are needed on the shop floor. What type of system has Hannah set up?
a. JIT
b. ERP
c. ABC
d. MRP
LO: 1
AC: 1.3
Correct answer: A
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q4. Due to an increase in inventory, Steve has had to procure some additional racking. What type of cost is
the racking?
a. Indirect
b. Variable
c. Direct
d. Fixed
LO: 1
AC: 1.2
Correct answer: C
Q5. What form of forecasting requires gathering data from previous sales and adding a percentage on for a
known upward trend in purchases by customers?
a. Objective
b. Subjective
c. Accurate
d. Unreliable
LO: 1
AC: 1.3
Correct answer: A
Q6. Arranging for goods to be transported by rail rather than road could provide which benefit to an
organisation?
LO: 2
AC: 2.2
Correct answer: A
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q7. DDP, EXW and FOB are examples of what?
a. Contracts
b. Tenders
c. Incoterms
d. Standard Terms
LO: 2
AC: 2.3
Correct answer: C
Q8. What is the name for the document which states where a product in transit started its life?
a. Certificate of conformance
b. Certificate of authentication
c. Certificate of incorporation
d. Certificate of origin
LO: 2
AC: 2.5
Correct answer: D
Q9. Juan has been awarded a contract with a low cost country supplier. This is the first time Juan has dealt
with the new supplier. The supplier does not want to supply Juan until he has received payment, but Juan
does not want to pay until he has the goods. Which of the below options is the best solution to the problem
Juan and his supplier have?
a. Letter of credit
b. Pro forma
c. Credit terms
d. BACS/CHAPS payment
LO: 2
AC: 2.5
Correct answer: A
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q10. Which of the following statements best describes obsolescent stock?
LO: 1
AC: 1.1
Correct answer: B
Q11. Which process monitors the progress of an order to ensure that it is received as quickly as possible?
a. Examining
b. Expediting
c. Extrapolating
d. Extending
LO: 3
AC: 3.2
Correct answer: B
LO: 1
AC: 1.1
Correct answer: A
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q13. Which of the following is an example of why an organisation might decide to hold inventory?
LO: 1
AC: 1.2
Correct answer: B
a. TQM
b. MRP
c. NLP
d. OGM
LO: 1
AC: 1.3
Correct answer: B
Q15. Drag and drop the correct option into the blank space.
can be described as the management of the flow of goods and services between two points.
Logistics
Operations
Organisational success
Procurement
LO: 2
AC: 2.1
Correct answer: Logistics
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q16. The rules that are used internationally to define the way in which goods can be purchased are
known as …
LO: 2
AC: 2.3
Correct answer: D
Q17. Which of the following documentation would you associate with the transportation of supplies?
a. Specification
b. Consignment note
c. Purchase order
d. Supplier catalogue
LO: 2
AC: 2.5
Correct answer: B
a. salt ingress
b. losing the ship in a storm
c. time of delivery
d. excessive cost
LO: 2
AC: 2.2
Correct answer: C
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q19. Air freight is often not considered to be an option to transport goods because …
LO: 2
AC: 2.2
Correct answer: B
LO: 3
AC: 3.1
Correct answer: B
Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question