CIPS L4M6 Exam - Topic 3 Question 76 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 76
Topic #: 3

[All L4M6 Questions]

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?

AFalse, the product is in a supply market which is highly complex and the product is of low importance

BFalse, the product is in a supply market which is highly complex and the product is of high importance

CTrue, the product is in a supply market which is of low complexity and the product is of high importance

DTrue, the product is in a supply market which is of low complexity and the product is of low importance

Show Suggested Answer

Suggested Answer: C

Comprehensive and Detailed

Leverage products are characterized by:

High profit impact:They significantly affect the company's bottom line.

Low supply risk:They are available from multiple suppliers, making it easy to switch if necessary.

These products often have standardized quality, and the competitive supply market allows buyers to negotiate favorable terms.

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by Winifred at Apr 07, 2026, 02:58 AM

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Antonio

2 days ago

I remember something about switching suppliers being easy for leverage products, so I might lean towards TRUE, but I could be wrong.

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Edna

7 days ago

I think leverage products are actually in low complexity markets, but I'm not sure about the importance aspect.

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