Online Access Free L4M2 Practice Test

A garment manufacturer supplies global retailers with t-shirts, shirts, and linen trousers. Because of currency fluctuations, the manufacturer is aware that they must control their direct costs in order to ensure profits. Which of the following is a direct cost for the garment manufacturer?

• A.Cotton fabric
• B.Utilities cost
• C.Facilities rent
• D.Office staff payroll

Which of the following are 'secondary sources' of data for costs and prices?
* Industry press
* Published economic indices
* Trade fairs
* Buyer's database on market data

• A.1 and 2 only
• B.2 and 3 only
• C.1 and 4 only
• D.3 and 4 only

Which of the following might be consequences of over-specification? Select TWO that apply:

• A.Better contract management
• B.Lack of essential features
• C.Higher cost due to inessential features
• D.Limiting competition in supply market
• E.Reducing motion waste

Category buyer Raheem has been tasked with receiving innovative bids from coaching and development service providers. How can he achieve this? Select TWO that apply.

• A.Use an outcome-based specification
• B.Invite a small group of suppliers
• C.Apply standards within the specification
• D.Use a conformance-based specification
• E.Apply early supplier involvement

XYZ Ltd operates in the plumbing and heating industry. The company has developed and patented a new range of alternative products, using a different material from conventional brass that offers substantial cost savings. XYZ Ltd plans to launch the full range of new products. Will this change the impact on competitive forces in the market?

• A.Yes, this development has created substitute products
• B.Yes, this development has created the threat of new entrants
• C.No, this development does not impact supplier bargaining power
• D.No, this development does not impact buyer bargaining power