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100% Pass 2025 CIPS Pass-Sure L4M2: Defining Business Needs New Dumps Book

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CIPS Defining Business Needs Sample Questions (Q24-Q29):

NEW QUESTION # 24
Which of the following are considered as direct costs in a construction company? Select TWO op-tions

A. The materials and supplies needed for the company's day-to-day operations.
B. Clerical assistants who maintain the office
C. Advertising and marketing communication
D. An employee is hired to work on a project, either exclusively or for an assigned number of hours
E. Raw materials

Answer: D,E

Explanation:
Direct costs are directly associated with the production of a good or service. In this question, 'An employee is hired to work on a project, either exclusively or for an assigned number of hours' and 'Raw materials' are directly related to producing the product.
Indirect costs are the general costs of the organisation - these costs cannot easily be attributed to specific products or services (also known as overheads). 'The materials and supplies needed for the company's day-to-day operations' or 'Clerical assistants who maintain the office' or 'Advertising and marketing communication' is example of indirect cost.
Reference:
LO 1, AC 1.2

NEW QUESTION # 25
To strengthen its market presence, ABC Group decided to develop a new product. A cross-functional team was formed to discuss the scope and the functions of the product. They will also survey the potential customers to see what they like, what they love, and what they dislike. What is this process called?

A. Product standardisation
B. Cash flow analysis
C. Value analysis
D. Value engineering

Answer: D

Explanation:
As you can see from the scenario, ABC Group is developing the new product. It might be using value engineering. The latter sentences confirm this: the cross-functional team in ABC is mapping the functions and surveying the customers. Their method is known as Kano model.

NEW QUESTION # 26
When procuring a machinery, at which stage buyer must check whether it is working to the stand-ards set out in the design specification?

A. Manufacture
B. Installation
C. Maintenance and repair activities
D. Customer support

Answer: B

Explanation:
Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.

Source: Andrew Graves
The installation stage occurs in In-Service Operations. At this stage, the machinery is shipped and installed on the buyer's premises and check to ensure that it is working to the standards set out in the design specification.
Reference:
LO 3, AC 3.2

NEW QUESTION # 27
XYZ Ltd is a large supermarket chain which operates mainly in the UK and Europe. Their custom-ers are increasingly concerned about sustainability. Therefore, procurement manager is required to source the products from suppliers who have good environmental performance. Which of the fol-lowing can be an assurance that the supplier has procedures and policies to enhance its environmental performance?

A. ISO 14001:2015 certificate
B. ISO 13485:2016 certificate
C. ISO 9001:2015 certificate
D. ISO 22716:2007 certificate

Answer: A

Explanation:
ISO 9001:2015 specifies requirements for a quality management system.
ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.
ISO 22716:2007 gives guidelines for the production, control, storage and shipment of cosmetic products.
These guidelines cover the quality aspects of the product, but as a whole do not cover safety aspects for the personnel engaged in the plant, nor do they cover aspects of protection of the environment.
ISO 13485:2016 specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide medical devices and related services that consistently meet customer and applicable regulatory requirements.

NEW QUESTION # 28
As the lead procurement manager, you have been asked to compile a business case for a large project. Which of the following should you include in the business case?
* Costs and risks
* List of large suppliers
* Business benefits
* Informal recommendation

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

Answer: C

NEW QUESTION # 29
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