CIPS Exam L4M2 Topic 8 Question 41 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 41
Topic #: 8

[All L4M2 Questions]

Procurement should work closely with colleagues in accounts when creating an annual budget. This is because the budget will help the company ...

ADefine terms and conditions of the contract

BPlan its finances for the next year

CProcess supplier invoices quicker

DPlan its functional strategy for the next year

Show Suggested Answer

Suggested Answer: A

In the scenario, ABC Ltd has the following characteristics:

- Large investment in facilities and machinery

- Access to skilled workforce

- Mass production.

This company is a manufacturer. Manufacturing is an industry that makes products from raw ma-terials by the use of manual labour or machinery and that is usually carried out systematically with a division of labour.

Manufacturing requires investment in machinery and access to a suitably skilled workforce as well as materials and components.

- CIPS study guide page 74-76

- manufacturing | Definition, Types, & Facts | Britannica

LO 2, AC 2.1

by Jaime at Aug 09, 2024, 01:01 AM

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Mohammad

2 months ago

B) Plan its finances for the next year - bingo! This is the one. It's as simple as that. Time to move on to the next question.

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Brigette

1 days ago

Agreed, it sets the direction for the company's financial goals and priorities.

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Mari

2 days ago

Absolutely, having a clear budget helps in making informed financial decisions.

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Raelene

5 days ago

Yes, planning finances for the next year is crucial for the company's success.

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Annett

2 months ago

C) Process supplier invoices quicker - nice try, but that's not the main purpose of the annual budget. Maybe they're confusing it with accounts payable procedures.

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Kanisha

12 days ago

D) Plan its functional strategy for the next year

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Devorah

17 days ago

B) Plan its finances for the next year

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Shaniqua

1 months ago

A) Define terms and conditions of the contract

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Reena

2 months ago

A) Define terms and conditions of the contract - huh? How is that related to the budget? Someone needs to brush up on their procurement knowledge.

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Dalene

2 months ago

I think the answer is D) Plan its functional strategy for the next year. A budget helps align resources with strategic goals.

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Ruby

2 months ago

D) Plan its functional strategy for the next year - this seems like a reasonable answer too. The budget can help guide the company's overall strategic direction.

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