New (2026) CIPS L4M2 Exam Dumps [Q67-Q81]

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New (2026) CIPS L4M2 Exam Dumps

Best Way To Study For CIPS L4M2 Exam Brilliant L4M2 Exam Questions PDF

CIPS L4M2 certification exam is an essential qualification for procurement and supply chain professionals who want to improve their skills and knowledge in identifying and defining business needs. L4M2 exam covers a wide range of topics that are critical to the effective identification of business requirements, including stakeholder analysis, market analysis, and risk analysis. Passing the CIPS L4M2 exam is a demonstration of an individual’s competence and expertise in analyzing business requirements and can help professionals achieve a successful career in procurement and supply chain management.

CIPS L4M2 exam is a comprehensive exam that requires candidates to demonstrate their knowledge and skills across a range of areas. L4M2 exam is divided into two parts: a multiple-choice section and a case study section. The multiple-choice section tests the candidate’s knowledge of the key concepts and principles related to defining business needs, while the case study section tests their ability to apply these concepts in a practical setting.

QUESTION 67
Which of the following agencies can produce a technical standard?

House of Lords

Marketing department

BSI

Department of State

QUESTION 68
Which one of the following would allow an established company to develop a competitive advantage over new entrants to its market?

Reduce advertising costs

Economies of scale

Internal management re-organisation

Selling only imported goods

QUESTION 69
ABC Ltd has recently set up a stationery contract with a large stationery provider, obtaining fixed prices on core stationery items. The brochures have been distributed within ABC Ltd and one of the key users wants to order a corner desk and office chair from the brochure. Is this within scope?

No, because the contract is for stationery only and not furniture

No, because the corner desk wouldn’t match existing furniture

Yes, because the contract is with the company and not just stationery

Yes, because the office equipment is in the brochure and must be covered

QUESTION 70
A “modified re-buy” means …

The existing specifications should be reviewed but not the supply market, as this type of purchase is complex

The specification should not be considered for future treatment as a stock item because of the modification

Both the specification and the market should be reviewed to manage the new circumstances

The existing supplier should be asked to supply the requirement because it is a modified re-buy of the same item

QUESTION 71
Which of the following are advantages of zero-based financial budgeting?
* Use of previous year figures
* Emphasis on short-term planning
* Budget treated as flexible
* Focus on operational issues

1 and 4 only

2 and 4 only

3 and 4 only

1 and 2 only

QUESTION 72
Which of the following is an useful tool for value engineering?

SAMOA

Kraljic Portfolio Matrix

Star-burst method

Kano model

QUESTION 73
Sabic is a petrochemical manufacturer. It wants to digitalise its operation and is looking for new IT system. The procurement manager approaches this matter with a through-life specification. He supposes that stating “good quality” in the specification will be enough for quality standard section. Is the procurement manager’s thought appropriate?

Yes, because the specification should be concise.

No, because “good quality” is an in-house jargon that suppliers are not familiar with

Yes, because IT sector has its own standard of quality, therefore, suppliers may deliver good quality without any further Explanation:

No, because “good quality” is very ambiguous for suppliers to identify Sabic’s re-quirement

QUESTION 74
An example of a direct cost is …

An overhead expense

Rent for premises

Office cleaning

Raw material

QUESTION 75
Lider Ltd is a leading bathroom furniture manufacturer in Indi
a. The company has more than 30 years experience in the market with extended knowledge of engineering and customers’ taste. Lider is planning to launch a new type of bath fitting next year which offers Bluetooth connectivity and thermostat display. The company gathers a team of multi-disciplines, including engineering, procurement, sales and marketing. At the first team meeting, the project leader tells the team to discuss which functions will be valued by the customers, and how to deliver those functions with the lowest costs possible. Which of the following describes the process that the project team is undertaking?

Cost analysis

Standardisation

Value engineering

Just in time

QUESTION 76
Honda of America Manufacturing is a well established automobile manufacturer. It purchases tens of thousands of materials and parts from suppliers, however, only few of them are strategic. To these suppliers, Honda’s procurement manager requires them to send details of labour, materials, overhead cost and profit.
However, the suppliers are reluctant to submit such confidential infor-mation. Is the procurement manager’s action appropriate?

Yes, because the procurement manager can get a good insight from the market

No, because no suppliers are willing to show sensitive information on their costs and profit.

Yes, because strategies can be introduced for reducing cost and improving the supplier relationships.

No, because procurement manager should conduct life-cycle analysis

QUESTION 77
Company A sells a product for $100. The total unit variable costs are $60. Fixed costs as in its ac-count are
$20,000. How many products does the company have to sell to achieve break-even point?

600

550

400

500

QUESTION 78
John has been asked to develop a business case before obtaining approval to purchase a large piece of capital equipment for a glove manufacturing unit. Is this the right thing to do?

Yes, because this will help compare alternatives and options

No, because risk consideration is not John’s responsibility

Yes, because this will assist the purchase order

No, because this can lead to business-focused thinking

QUESTION 79
Department for Transport (DfT) needs to buy new locomotives to expand the capacity of trains fleet. In 2009, they were criticized for beginning the procurement “without any clear idea of how many trains would be needed, which routes they would run on and what form of power would be required”. What should procurement manager of DfT do first to manage risk in making the specification?

Identify the possible risks

Monitor the potential risks

Implement mitigating actions

Assess the potential risks

QUESTION 80
Which of the following are the focuses of ISO 14001:2015?

1. Life cycle
2. Process
3. Capacity
4. Information security
2 and 4 only

1 and 2 only

2 and 3 only

3 and 4 only

ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.
ISO 14001:2015 helps an organization achieve the intended outcomes of its environmental man-agement system, which provide value for the environment, the organization itself and interested parties. Consistent with the organization’s environmental policy, the intended outcomes of an environmental management system include:
* enhancement of environmental performance;
* fulfilment of compliance obligations;
* achievement of environmental objectives.
ISO 14001:2015 is applicable to any organization, regardless of size, type and nature, and applies to the environmental aspects of its activities, products and services that the organization determines it can either control or influence considering a life cycle perspective. ISO 14001:2015 does not state specific environmental performance criteria.
ISO 14001:2015 can be used in whole or in part to systematically improve environmental manage-ment.
Claims of conformity to ISO 14001:2015, however, are not acceptable unless all its require-ments are incorporated into an organization’s environmental management system and fulfilled without exclusion.
In conclusion, ISO 14001:2015 focuses on: management system (including roles, leadership and processes) and the life cycle of product or service. Life cycle is defined as “consecutive and inter-linked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal. […] The life cycle stages include acquisition of raw materials, design, production, transportation/ delivery, use, end-of-life treatment and final disposal.” The answer is process and life cycle.
Reference:
– ISO 14001:2015 Environmental management systems – Requirements with guidance for use LO 3, AC 3.1

QUESTION 81
Royal Navy is preparing a through-life contract. They put to the contract a term on rectification of operational defects and planning and delivery of Fleet Time Support Periods. Which part of through-life requirement does this term belong to?

Installation

In-service support

Manufacture

Customer support