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Level 2 Certificate in Procurement and
Supply Operations

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NC3 - Procurement and
supply processes

EXAM EXEMPLAR QUESTIONS

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MULTIPLE CHOICE QUESTIONS AND ANSWERS

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NC3 Exam Exemplar Questions Mar2013

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The correct answer will be identified as the [KEY]

section 1. section 2. Learning outcome: 1.5 Page 2 of 6 NC3 Exam Exemplar Questions Mar2013 .2 PLE QU SA M CIPS study guide reference: Chapter 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.1 CIPS study guide reference: Chapter 1. [KEY] Learning outcome: 1.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.

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 supplier’s performance (b) Agreeing the terms of the contract (c) Receiving goods from a supplier (d) Sourcing the supply market. Learning outcome: 1.4 and 2.1 NC3 Exam Exemplar Questions Mar2013 Page 3 of 6 .1 PLE QU SA M CIPS study guide reference: Chapter 4. [KEY] Learning outcome: 2.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 organisation’s local area (d) Suppliers not used in the past.3 CIPS study guide reference: Chapter 3. section 2. sections 1.

3 and 2.2 CIPS study guide reference: Chapter 5.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.3 PLE QU SA M CIPS study guide reference: Chapter 4.1 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.4. sections 1. section 2. Chapter 6. Learning outcome: 2. sections 2.3 Page 4 of 6 NC3 Exam Exemplar Questions Mar2013 .1 and 1. Learning outcome: 2.

1 CIPS study guide reference: Chapter 7.34 NC3 Exam Exemplar Questions Mar2013 Page 5 of 6 . section 2.Q7 Question Which of the following provides the purchaser with information of the user’s specific requirements? (a) e-notice (b) e-requisition [KEY] (c) e-contract (d) e-catalogue. section 1.2 PLE QU SA M CIPS study guide reference: Chapter 8. Learning outcome: 3.1 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.

section 5.17 Page 6 of 6 NC3 Exam Exemplar Questions Mar2013 .3 QU SA M 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. Learning outcome: 3.3 CIPS study guide reference: Chapter 9. PLE Learning outcome: 3.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.