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100% Pass Quiz 2026 L5M6: Category Management–Trustable Exam Simulations

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100% Pass Quiz 2026 L5M6: Category Management–Trustable Exam Simulations

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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 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.
Topic 3
  • 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.

CIPS Category Management Sample Questions (Q30-Q35):NEW QUESTION # 30
What is the purpose of a Category Board?
  • A. To approve spending over a certain amount
  • B. To select the Category Manager
  • C. To mitigate all risks
  • D. To develop and implement a category strategy
Answer: D
Explanation:
A Category Board [sometimes called a Category Council or Committee] is a cross-functional group of stakeholders responsible for overseeing the development and implementation of a category strategy. It brings together representatives from procurement, finance, operations, and other relevant departments to ensure that sourcing decisions align with overall business objectives.
While boards may also review spending or risk, their main role is strategic governance. They provide input into category planning, approve strategies, resolve conflicts, and ensure stakeholder buy-in. This collaboration is essential, as category management is a cross-functional discipline that cannot succeed if procurement operates in isolation.
Options A and B are too narrow, while option D is unrealistic-no body can "mitigate all risks." Instead, the board ensures risks are recognised and addressed within the strategy.
The study guide highlights the importance of such structures in embedding category management within an organisation's governance framework.
[Ref: CIPS L5M6 Study Guide, pp.614 - Category Boards and governance in category management]

NEW QUESTION # 31
Workshops, safety facilities, and design engineers are indirect costs associated with which industry?
  • A. Construction
  • B. Retail
  • C. Agriculture
  • D. Services
Answer: A
Explanation:
In construction, indirect costs include items like workshops, safety facilities, and design engineers. These are necessary for operations but not directly tied to a single output.
[Ref: CIPS L5M6 Study Guide, p.90 - Indirect cost examples by industry]

NEW QUESTION # 32
Barb is a Category Manager at XYZ Logistics. She is putting together a Category Plan. Which of the following sections should she include? Select THREE.
  • A. Category objectives
  • B. History of the category
  • C. Category risks
  • D. Supply market analysis
  • E. HR information on the team
Answer: A,C,D
Explanation:
A Category Plan is a strategic document that sets out how a category will be managed to deliver organisational objectives. It typically includes:
* Supply market analysis to understand supplier dynamics, competition, and risks.
* Category objectives, which align with organisational strategy and specify what procurement aims to achieve.
* Category risks, which outline potential threats and mitigation strategies.
HR information and a full history of the category are not required, as the plan is forward-looking, focusing on strategy rather than operational details. While historical context may be summarised in an executive overview, it does not form a full section. A well-structured Category Plan supports better decision-making, stakeholder engagement, and ensures consistent management of spend. It provides a roadmap for how value will be captured, risks managed, and supplier relationships developed. Without it, category management risks becoming reactive and fragmented.
Reference: CIPS L5M6 Study Guide, p.10

NEW QUESTION # 33
Which of the following are potential consequences for an organisation which fails to identify and address risk? Select TWO.
  • A. Damage to brand image
  • B. Lawsuits
  • C. Corruption
  • D. Financial loss
Answer: A,D
Explanation:
CIPS highlights that damage to brand reputation and financial loss are two major risks of failing to manage supply chain risks effectively. Legal issues such as lawsuits arise from illegal activity, which is separate from general risk exposure.
Reference: CIPS L5M6 Study Guide, p.111

NEW QUESTION # 34
Callie is a Category Manager at a car parts manufacturer. She discovers through a SWOT analysis that many other customers are increasing short-term demand for raw materials. Which category does this fall under?
  • A. Threats
  • B. Weaknesses
  • C. Strengths
  • D. Opportunities
Answer: A
Explanation:
This situation represents a Threat within SWOT analysis. SWOT distinguishes between internal and external factors. Strengths and weaknesses are internal to the organisation, while opportunities and threats are external.
Here, the short-term spike in demand is external to Callie's business. It is also potentially harmful because increased competition for raw materials [rubber, metal, etc.] can lead to higher prices, longer lead times, and supply shortages. Therefore, this is categorised as a threat.
It cannot be an opportunity, as the increase in demand benefits suppliers rather than Callie's firm. Nor is it a strength or weakness, as those describe factors within the company such as production capabilities or financial resources.
Using SWOT in category management allows managers to anticipate and mitigate external risks while leveraging internal strengths. Recognising this threat means Callie may develop strategies such as dual sourcing, supplier collaboration, or forward buying to reduce exposure.
[Ref: CIPS L5M6 Study Guide, p.122 - SWOT analysis in category management]

NEW QUESTION # 35
......
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