NS

Level 2 Certificate in Procurement and

Supply Operations

QU
EST
IO

NC3 - Procurement and

supply processes

EXAM EXEMPLAR QUESTIONS

PLE

MULTIPLE CHOICE QUESTIONS AND ANSWERS

Page 1 of 6

NC3 Exam Exemplar Questions Mar2013

S
IF
20 ICAT
13 IO
N

QU
AL

SA
M

The correct answer will be identified as the [KEY]

Q1 Question

Which of the following terms describes an agreement where a supplier agrees to provide an
estimated quantity of items over an agreed period at an agreed price?

(a) Blanket order [KEY]

(b) Spot order

(c) Major works order

(d) Fixed price order.

Learning outcome: 1.1

CIPS study guide reference: Chapter 1, section 2.5
Q2 Question

EST
ION
S

Answers

Which of the following defines a fixed price contract?

Answers

(a) A contract where the price has been quoted in writing by the supplier

(b) A contract where the price may be varied using an agreed formula

(c) A contract where the price is the same as for previous orders

(d) A contract where the price cannot be varied between the purchaser and
seller. [KEY]

Learning outcome: 1.2

PLE

QU

SA
M

CIPS study guide reference: Chapter 2, section 1.5

Page 2 of 6

NC3 Exam Exemplar Questions Mar2013

Q3 Question

An organisation will issue a restricted tender to which of the following types of supplier?
Answers
(a) International suppliers

(b) Pre-qualified suppliers [KEY]

(c) Suppliers based in the organisations local area

(d) Suppliers not used in the past.

Learning outcome: 1.3

CIPS study guide reference: Chapter 3, section 2.12
Q4 Question

EST
ION
S

During which of the following stages of the purchasing cycle is Internet based research used?
Answers
(a) Measuring a suppliers performance

(b) Agreeing the terms of the contract

(c) Receiving goods from a supplier

(d) Sourcing the supply market. [KEY]

Learning outcome: 2.1

PLE

QU

SA
M

CIPS study guide reference: Chapter 4, sections 1.4 and 2.1

NC3 Exam Exemplar Questions Mar2013

Page 3 of 6

Q5 Question

Which of the following is a source of financial information about suppliers?

(a) Market research companies

(b) Credit rating agencies [KEY]

(c) Chambers of commerce

(d) Debt collection agencies.

Learning outcome: 2.2

CIPS study guide reference: Chapter 5, section 2.1
Q6 Question

EST
ION
S

Answers

Which of the following defines the term intranet?

Answers

(a) An information network whose use is restricted to internal users [KEY]

(b) A search engine that allows users to access the World Wide Web

(c) An information network which any external users can access

(d) A web site that provides answers to frequently-asked questions.

Learning outcome: 2.3

PLE

QU

SA
M

CIPS study guide reference: Chapter 4, sections 2.3 and 2.4, Chapter 6, sections 1.1 and 1.3

Page 4 of 6

NC3 Exam Exemplar Questions Mar2013

Q7 Question

Which of the following provides the purchaser with information of the users specific requirements?

(a) e-notice

(b) e-requisition [KEY]

(c) e-contract

(d) e-catalogue.

Learning outcome: 3.1

CIPS study guide reference: Chapter 7, section 2.1
Q8 Question

EST
ION
S

Answers

Which of the following types of record are held in a purchase ledger?

Answers
(a) Records of stock usage

(b) Records of payments received from customers

(c) Records of suppliers quotations

(d) Records of payments made to suppliers. [KEY]

Learning outcome: 3.2

PLE

QU

SA
M

CIPS study guide reference: Chapter 8, section 1.34

NC3 Exam Exemplar Questions Mar2013

Page 5 of 6

Q9 Question

Which of the following is the earliest stage in the purchasing cycle?

(a) Award the contract

(b) Negotiate best value

(c) Define the need [KEY]

(d) Source the market.

Learning outcome: 3.3

CIPS study guide reference: Chapter 9, section 1.2
Q10 Question

EST
ION
S

Answers

At which of the following stages of the purchasing cycle is the technique of vendor rating used?
Answers
(a) Measuring supplier performance [KEY]

(b) Preparing the specification

(c) Receiving goods from suppliers

(d) Identifying new sources of supply.

PLE

Learning outcome: 3.3

QU

SA
M

CIPS study guide reference: Chapter 9, section 5.17

Page 6 of 6

NC3 Exam Exemplar Questions Mar2013