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CIPS Exam L4M2 Topic 1 Question 15 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 15
Topic #: 1
[All L4M2 Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.


LO 3, AC 3.1

Contribute your Thoughts:

Bernardine
9 days ago
Ah, the old 'costs and risks, business benefits' combo. Gotta love the classics. I wonder if the exam writers have a handbook of classic business case questions or if they just randomly generate them.
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Geraldo
12 days ago
List of large suppliers and an informal recommendation? Really? That's like asking for a recipe and getting a grocery list. This question is clearly trying to trick us.
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Christiane
16 days ago
Costs and risks, and business benefits? Duh, that's a no-brainer. I bet the procurement manager could write this business case with their eyes closed.
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Carmen
20 days ago
I think we should go with option C, including costs, risks, and informal recommendation.
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Fletcher
22 days ago
I agree with Viva, business benefits should also be included for a comprehensive case.
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Viva
25 days ago
I think we should include costs and risks in the business case.
upvoted 0 times
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