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[General] L5M6 PDF Download, L5M6 Reliable Study Questions

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【General】 L5M6 PDF Download, L5M6 Reliable Study Questions

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CIPS L5M6 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand the Concepts, Tools, and Techniques Associated with Managing Expenditure: This section of the exam measures the analytical abilities of a Category Analyst and focuses on expenditure management techniques within category management. It explores how organizations identify, classify, and analyze different types of spend to enhance procurement efficiency and value creation.
Topic 2
  • Understand Approaches that Can Be Used to Develop Category Management Strategies: This section of the exam measures the skills of Procurement Managers and focuses on understanding how category management strategies are formulated within procurement functions. Candidates are expected to differentiate between strategic and conventional sourcing, evaluate how these approaches support long-term supplier relationships, and align them with organizational goals. The section also emphasizes the role of category management in enhancing sourcing efficiency and achieving cost optimization.
Topic 3
  • Understand the Strategic Impact of a Category Management Process: This section evaluates the strategic insight of a Procurement Manager into how category management influences organizational performance. It explores the use of data-driven decision-making and market intelligence to shape sourcing strategies and drive sustainable procurement outcomes.

CIPS Category Management Sample Questions (Q87-Q92):NEW QUESTION # 87
Francis is a Category Manager within a large agricultural company which has over 10 categories. He believes that the Category with the largest spend (in £) is the most important category to the business. Is he correct?
  • A. Yes - A larger spend signifies that the category is buying larger volumes of items than other categories
  • B. Yes - Categories with larger budgets buy more important items
  • C. No - This fails to address the importance of the item to the organisation's service / product
  • D. No - All categories are equally as important to the business
Answer: C
Explanation:
Francis is not correct. Spend alone does not determine the importance of a category. For example, a high- spend category may include non-critical items, while a lower-spend category may include bottleneck or strategic items essential to operations. The importance of a category is determined by its impact on organisational goals and supply risk, not just spend.
Reference: CIPS L5M6 Study Guide, p.98

NEW QUESTION # 88
Which of the following approaches to cost is the least transparent?
  • A. Price management
  • B. Price acceptance
  • C. Cost out
  • D. Cost down
Answer: B
Explanation:
Price acceptance is the least transparent approach because the buyer simply accepts the supplier's quoted price without investigating its basis or fairness. There is no visibility into the supplier's cost structure, margins, or pricing methodology.
By contrast:
* Price management involves actively managing pricing discussions.
* Cost down involves collaborative efforts to reduce costs after production.
* Cost out involves eliminating costs before production through design.
[Ref: CIPS L5M6 Study Guide, p.81 - Costing methods]

NEW QUESTION # 89
A 'should cost' analysis and value analysis can be completed on items procured by a buyer. Which of the following categories of spend are these tools most applicable for?
  • A. Bottleneck
  • B. Leverage
  • C. Strategic
  • D. Non-critical
Answer: B
Explanation:
These tools are most applicable for leverage items, which typically have high spend but low supply risk.
Buyers can use cost breakdowns and value analysis to reduce prices and improve cost-efficiency.
Reference: CIPS L5M6 Study Guide, p.103

NEW QUESTION # 90
Yvonne is the Lead Negotiator for her Category. She is renewing a contract with an existing supplier and her negotiation technique is based on being passionate and creating a shared sense of purpose. Which negotiation style does she employ?
  • A. Logic
  • B. Empathy
  • C. Confidence
  • D. Inspire
Answer: D
Explanation:
The correct answer is Inspire. According to the negotiation styles outlined in the L5M6 study guide, the Inspire style is based on passion, motivation, and creating a sense of shared purpose between buyer and supplier. It focuses on appealing to the values and aspirations of the other party, encouraging collaboration and commitment beyond transactional goals.
Unlike logic [which relies on rational arguments and data] or confidence [which emphasizes authority and assertiveness], inspire creates an emotional connection that fosters trust and long-term cooperation. Empathy is another style that focuses on understanding the other party's position but does not carry the motivational dimension of "inspire." For category managers, using an inspire style can be particularly powerful when renewing contracts with long-term suppliers where collaboration, innovation, and trust are critical to value creation. It demonstrates leadership and ensures both sides are committed to mutually beneficial outcomes.
[Ref: CIPS L5M6 Study Guide, p.67 - Negotiation styles in category management]

NEW QUESTION # 91
Bill is collecting data on a mobile phone category item. Which of the following can he find from the phone's
'line item' details? [Select TWO]
  • A. Functionality
  • B. Price
  • C. Quantity ordered
  • D. Components
Answer: B,C
Explanation:
Line item details provide specific transactional information about a purchased product, such as the quantity ordered and the price paid. This information is critical for category managers who rely on spend data to analyse patterns, negotiate supplier agreements, and benchmark costs.
Other details such as functionality or components are not typically captured in line item data. These relate more to specifications and technical design documents rather than financial records.
By analysing line item data across multiple purchases, category managers can identify trends such as bulk- buying opportunities, price fluctuations, and supplier performance. It also assists in spend analysis, which is a fundamental step in category management for mapping categories and identifying cost-saving opportunities.
[Ref: CIPS L5M6 Study Guide, p.134 - Line item detail in spend analysis]

NEW QUESTION # 92
......
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