CIPS L6M5 Practice Questions| TestInsights

Question 1

Juno is completing a Variance Analysis on the sales department's spend for the first quarter. He concludes that there is a Favourable Variance. What does this mean?

Athe department has more money in the budget than what they have spent so far

Bthe department has spent more than the allocated budget

Cthe results are better than expected

Dthe results are worse than expected

Correct : C

A favourable variance means that the actual performance was better than expected.

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Athe department has more money in the budget than what they have spent so far

Bthe department has spent more than the allocated budget

Cthe results are better than expected

Dthe results are worse than expected

Question 2

Danger Incorporated is estimating the costs for a new project called the Ninja Project using an algorithm based on the project's scope, duration, and complexity. What type of cost estimate is being used?

Aexpert judgement

Bbottom-up

Canalogous

Dparametric

Correct : D

Using an algorithm based on key parameters is characteristic of a parametric cost estimate.

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Aexpert judgement

Bbottom-up

Canalogous

Dparametric

Question 3

Cactus Construction is the Principal Contractor on a housing estate project under an NEC contract. Which of the following scenarios would be a mandatory variation?

Athe project falls behind the plan due to staff shortages

Bthe client changes their opinion on the design

Cchanges to building regulations

Draw material prices increase

Correct : C

Changes to building regulations are mandatory because they are legally binding and require compliance.

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Athe project falls behind the plan due to staff shortages

Bthe client changes their opinion on the design

Cchanges to building regulations

Draw material prices increase

Question 4

Sarah is a Project Manager running a project to create a new type of shoe that is sensitive due to intellectual property issues. She is undergoing Programme Level Control. What is the purpose of Programme Level Control?

Ato ensure the project remains a secret

Bto provide additional resources to ensure the project is completed on time

Cto ensure the project is running to the allocated budget

Dto track how much money the project has spent

Correct : B

Programme Level Control is used to ensure that adequate resources are allocated to complete the project on time.

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Ato ensure the project remains a secret

Bto provide additional resources to ensure the project is completed on time

Cto ensure the project is running to the allocated budget

Dto track how much money the project has spent

Question 5

Liability limitation often focuses on which of the following types of loss, which is said to be the most unpredictable and most significant in the case of a default on a contract?

Arepudiatory

Banticipatory

Cdirect

Dconsequential

Correct : D

Consequential loss is considered the most unpredictable and significant, hence it is often the focus of liability limitations.

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Arepudiatory

Banticipatory

Cdirect

Dconsequential

Curious about Actual CIPS Level 6 Professional Diploma in Procurement and Supply (L6M5) Exam Questions?

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