CIPS Defining Business Needs (L4M2) Free Practice Test
Question 1
Outcome specifications should be used when:
Correct Answer: D
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Question 2
An example of a direct cost is ...
Correct Answer: D
Question 3
Which of the following specific markets is most likely to have the lowest entry barrier?
Correct Answer: A
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Question 4
Product development consists of various stages, including planning and analysis, design develop-ment, pre- production, production and maintenance. At which stages the opportunities for cost re-duction will be the greatest?
1. Planning stage
2. Pre-design stage
3. Detail design stage
4. Production stage
5. Logistics support stage
1. Planning stage
2. Pre-design stage
3. Detail design stage
4. Production stage
5. Logistics support stage
Correct Answer: B
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Question 5
Due to the growth of consumer electronics market, semiconductor industry develops exponentially. However, the industry is dominated by a dozens of manufacturer. Chipset need to be built in factories with highly controlled environments. New chip factories cost billions of dollars and can take two years to build. Right now, factories are running at full capacity, which produce almost perfect yields, meaning basic chipset can be made for less than a dollar and more advanced versions for not much more. What are the barriers to new entrants in the semiconductor industry?
1. Poor industry growth
2. High set-up costs
3. Economies of scale
4. Low switching costs
1. Poor industry growth
2. High set-up costs
3. Economies of scale
4. Low switching costs
Correct Answer: D
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Question 6
Which of the following would be considered to be direct costs? Select TWO that apply:
Correct Answer: D,E
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Question 7
Which of the following is the process for improving the value of a new product or service?
Correct Answer: C
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Question 8
A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long period, the costs of materials can fluctuate widely. The procurement manager suggests that the pricing structure should be able to cover the supplier's costs plus 10% markup on total costs. This arrangement is known as...?
Correct Answer: A
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Question 9
XYZ Ltd is the largest consumer of brass in the country. It consumes 48% of all brass manufactured, while the second-largest consumes less than 10% of brass manufactured. Which force or power does XYZ Ltd possess?
Correct Answer: A
Question 10
Which of the following are fixed costs? Select TWO that apply.
Correct Answer: C,E
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Question 11
A drawing is an example of...?
Correct Answer: A
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