Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

Page: 1 / 117

Total 585 Questions | Updated On: Jul 22, 2026

Add To Cart

Question 1

A procurement professional is sourcing spark plugs for his automotive company. He realises that although the spend on spark plug only occur about 1% of a car's total cost, but lacking this component would have a significant impact on the car's quality and safety. There are many suppliers available which locate in different countries and their product quality is not much different from each other. According to Kraljic's matrix, spark plugs are examples of which of the following categories?

A : ansactional

B : ms-length

C : oser tactical

D : llaborative

Answer: A

Question 2

Using a weighted scorecard to assess and compare supplier proposals is beneficial for which of the following reasons?

A : Deciding on what score to give each criterion is subjective and can avoid transparency in the selectionprocess

B : It provides an objective and consistent approach to evaluating bids and ensures that best value formoney is achieved

C : It increases bias towards suppliers who otherwise might not have been awarded the contract

D : The focus on price simplifies the assessment process, making it easier to select the lowest cost supplier

Answer: B

Question 3

Which of the following payment mechanisms is most beneficial to the supplier?

A : open account

B : cash in advance

C : sight draft

D : letter of credit

Answer: B

Question 4

What are some signs that a supplier has insufficient capacity? Select TWO that apply:

A : Decrease in the unit price

B : Decrease in percentage of faulty product

C : The financial position is strong

D : Decrease in percentage of in-full delivery

E : Increase in the late delivery time

Answer: D,E

Question 5

Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?

A : The buyer takes responsibility for the goods after they are loaded on the ship, plus all subsequent costs, including freight charges

B : The buyer takes responsibility for the goods after they are loaded on the ship, plus subsequent costs, excluding freight charges

C : The buyer takes responsibility for taking the goods from the departure quayside to the ship, plus all subsequent costs

D : The buyer takes responsibility for transferring the goods from the seller's premises to the ship, plus all subsequent costs

Answer: A

Page: 1 / 117

Total 585 Questions | Updated On: Jul 22, 2026

Add To Cart