Free CIPS L4M2 Exam Questions

Become CIPS Certified with updated L4M2 exam questions and correct answers

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Total 367 Questions | Updated On: Apr 20, 2026

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Question 1

A procurement manager is seeking to control costs for his organisation. His predecessor constantly spent moremoney than budgeted, so he has decided to start this budget from scratch and ignore the previous periods.Which type of budget is this?

A : Zero-based budget

B : Rolling budget

C : Incremental budget

D : Fixed budget

Answer: A

Question 2

How can a procurement department meet the business needs when purchasing leverage items?

A : Developing long-term relationships such as partnerships

B : Developing efficient order processes such as e-procurement

C : Developing effective contracts such as call-off contracts

D : Developing buying power such as competitive tendering

Answer: D

Question 3

FSB Group is developing a building specification that ensures fair labour practices and prioritises localemployment. What type of sustainability criteria does this describe?

A : Environmental sustainability

B : Economic sustainability

C : Profit sustainability

D : Social sustainability

Answer: D

Question 4

Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?

A : Yes, decommissioning and disposal costs will not be accounted in this approach

B : Yes, this approach will lower the total cost of ownership

C : No, a ship is used only once, through-life management is unnecessary

D : No, the company just needs to select the lowest bidder

Answer: B

Question 5

What issue is a buyer most likely to experience if the technical specification sent to suppliers as part of a Request For Quotation (RFQ) is insufficient?

A : The buyer will receive quotes at different times from suppliers, which will require greater coordination with other members of the sourcing team

B : The buyer will receive costs from suppliers in different formats, which will make it difficult to compare costs on a like-for-like basis

C : The buyer will not be able to compare different suppliers' costs directly as the suppliers will have had to make assumptions on the specification

D : The buyer will need to work with their finance colleagues and business stakeholders to adjust the budget available for the project

Answer: C

Page: 1 / 74

Total 367 Questions | Updated On: Apr 20, 2026

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