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CIPS Exam L4M2 Topic 1 Question 15 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 15
Topic #: 1
[All L4M2 Questions]

As the lead procurement manager, you have been asked to compile a business case for a large project. Which of the following should you include in the business case?

Costs and risks

List of large suppliers

Business benefits

Informal recommendation

Show Suggested Answer Hide Answer
Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.


LO 3, AC 3.1

by Theodora at Apr 03, 2023, 11:55 AM

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Theresia
2 months ago
Hey, you know what they say, 'the more suppliers, the merrier!' Or was that 'the more the merrier'? Either way, I'm definitely not picking that one.
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Susy
5 days ago
D) 2 and 3 only
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Susana
10 days ago
I agree, costs and risks along with business benefits are crucial in a business case.
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Fatima
12 days ago
A) 1 and 3 only
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Cristal
2 months ago
Informal recommendation? What is this, a Yelp review for a procurement project? I'll take the 'costs and risks, business benefits' option, thanks very much.
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Bernardine
2 months ago
Ah, the old 'costs and risks, business benefits' combo. Gotta love the classics. I wonder if the exam writers have a handbook of classic business case questions or if they just randomly generate them.
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Tiffiny
28 days ago
C) 1 and 4 only
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Timothy
1 months ago
A) 1 and 3 only
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Geraldo
2 months ago
List of large suppliers and an informal recommendation? Really? That's like asking for a recipe and getting a grocery list. This question is clearly trying to trick us.
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Christiane
2 months ago
Costs and risks, and business benefits? Duh, that's a no-brainer. I bet the procurement manager could write this business case with their eyes closed.
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Mozell
28 days ago
It's important to highlight both the potential costs and benefits to make a strong case for the project.
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Patria
1 months ago
I think the procurement manager will have no problem including those in the business case.
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Belen
1 months ago
Definitely, those are key factors to consider when presenting a project proposal.
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Shay
1 months ago
I agree, costs and risks along with business benefits are essential in a business case.
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Carmen
2 months ago
I think we should go with option C, including costs, risks, and informal recommendation.
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Fletcher
2 months ago
I agree with Viva, business benefits should also be included for a comprehensive case.
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Viva
2 months ago
I think we should include costs and risks in the business case.
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