Contract Administration - L3M3 Exam Practice Test

Question 1

When a proposal fits with organisational strategy / direction / values, this can be described as:

A. Ailment

B. Alignment

C. Accompaniment

D. Adjournment

Correct Answer: B

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Question 2

When both buyer and seller share cost information with each other (in both directions), in order to collaborate in cost reduction activities.

A. Cost transparency

B. Co-destiny

C. Open book costing

D. Cost analysis

Correct Answer: A

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Question 3

'Because they are set up for a specified duration, XXX contracts are subject to expiry rather than completion, unless they are renewed or extended.'

A. Spot

B. Framework

C. Term

D. Call-off

Correct Answer: C

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Question 4

When negotiating, it is highly desirable to have both a:

A. ZOPA and a TABNA

B. DOPA and a BANTA

C. BATNA and a FOPA

D. BATNA and a ZOPA

Correct Answer: D

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Question 5

Which of the following statements is untrue? Select two.

A. A framework arrangement cannot be used for consultancy services, although it can be used for construction work.

B. There is an obligation to buy under a framework arrangement

C. The framework arrangement establishes the basic terms and conditions that will apply to subsequent orders

D. In most cases, a framework arrangement is not itself a contract.

Correct Answer: A,B

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Question 6

What gets measured, gets ...'?

A. Measured

B. Lost

C. Procured

D. Managed

Correct Answer: D

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Question 7

In which quadrant of a SWOT analysis would 'well-developed management skills, unique intellec-tual property rights and sound financial backing' appear?

A. S

B. W

C. T

D. O

Correct Answer: A

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Question 8

According to Lysons and Farrington, two authors recommended by CIPS, which of the following are cost-based pricing models, as opposed to market-driven pricing models? Choose two.

A. Marginal pricing

B. Penetration pricing

C. Promotional pricing

D. Rate of return pricing

Correct Answer: A,D

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Question 9

After a framework arrangement is in place, a further XXXX competition can be held. Which word replaces XXXX?

A. Micro

B. Maxi

C. Micra

D. Mini

Correct Answer: D

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Question 10

In this course, the acronym 'CPA' stands for:

A. Contract price adjustment

B. Cost price adjustment

C. Critical path analysis

D. Certified price assessor

Correct Answer: A

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CIPS Contract Administration - L3M3 Exam Practice Test

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