Independence Day Deal! Unlock 25% OFF Today – Limited-Time Offer - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

CIPS Exam L4M6 Topic 3 Question 42 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 42
Topic #: 3

[All L4M6 Questions]

The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

Asupplier positioning

Bcost analysis

Crelationship spectrum

Dcost engineering

Show Suggested Answer

Suggested Answer: B

The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.

by Raymon at Jun 22, 2024, 10:39 PM

Limited Time Offer

25%

Off

Get Premium L4M6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jettie

1 months ago

Wait, there's an 'engineering' version of the ABC Analysis? I guess that's for the procurement professionals who really love their spreadsheets.

upvoted 0 times

...

Franchesca

1 months ago

I heard the ABC Analysis is also great for determining how much chocolate is 'vital' to my daily intake. Gotta love those Pareto snacks!

upvoted 0 times

Shad

3 days ago

Glenn: Oh, I see. So it's more about efficiency and optimization in purchasing.

upvoted 0 times

...

Glenn

9 days ago

User 2: The ABC Analysis is actually used to categorize items based on their importance and prioritize procurement efforts.

upvoted 0 times

...

Quentin

18 days ago

User 1: Haha, that's a funny way to think about it!

upvoted 0 times

...

...

Kimberlie

2 months ago

Cost engineering? What is this, a trick question? Everyone knows the ABC Analysis is all about the Pareto Principle. B is the way to go.

upvoted 0 times

Staci

10 days ago

Cost engineering doesn't really fit with the Pareto Principle.

upvoted 0 times

...

Lauran

24 days ago

Yeah, the ABC Analysis is definitely more about cost analysis.

upvoted 0 times

...

Iluminada

1 months ago

I think B makes sense, it's about analyzing costs.

upvoted 0 times

...

...

Alayna

2 months ago

Relationship spectrum? Really? This is clearly about optimizing procurement costs. The answer has to be B.

upvoted 0 times

...

Lai

2 months ago

Cost analysis, of course! The whole point is to identify the vital few items that account for the majority of expenditures.

upvoted 0 times

...

Corrina

2 months ago

I believe it can also be used for supplier positioning, not just cost analysis.

upvoted 0 times

...

Lavonna

2 months ago

The ABC Analysis is definitely for supplier positioning. I've used it to categorize my vendors and focus on the critical few.

upvoted 0 times

Fredric

1 months ago

I prefer using it for cost analysis, helps me identify where I can save money.

upvoted 0 times

...

Lauryn

2 months ago

I agree, it's a great tool for supplier positioning.

upvoted 0 times

...

...

Leonora

2 months ago

I agree with Lonna, it helps in analyzing costs effectively.

upvoted 0 times

...

Lonna

3 months ago

I think the ABC Analysis is used for cost analysis.

upvoted 0 times

...

az-700 pass4success az-104 200-301 200-201 cissp 350-401 350-201 350-501 350-601 350-801 350-901 az-720 az-305 pl-300

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77