Discuss CIPS L4M6 Exam Topic 9 Question 28

What are service credits?

AA type of payment where goods are delivered before payment is made

BA mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance

CWhen a buyer makes a purchase on credit

DA clause in a contract that allows for additional bonus payments for meeting KPIs

Suggested Answer: B

The correct answer is ''A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance''. A definition is provided on p.113 and states ''If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier''

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17 comments · newest first

Larue 11 months ago

I disagree, they’re more about bonus payments for KPIs.

Marcos 12 months ago

Wait, are they really a thing? Sounds kinda complicated.

Lorean 12 months ago

Definitely B! It’s a common practice in contracts.

Jacqueline 1 year ago

I thought they were just about making purchases on credit.

Layla 1 year ago

Service credits are all about performance management!

Allene 1 year ago

I vaguely recall something about service credits being linked to payments, but I can't remember if it was about deductions or credits for performance.

Nan 1 year ago

I’m confused about the definitions. I thought service credits were more about bonuses for meeting KPIs, like in option D.

Karma 1 year ago

I remember a practice question that mentioned service credits as a way to manage underperformance, so I’m leaning towards option B.

Tracey 1 year ago

I think service credits might relate to performance management, but I'm not entirely sure if it's about deducting payments or something else.

Rosann 1 year ago

Ah, I think I know the answer to this one. Service credits are a way for the buyer to deduct money from the supplier's payments if they don't meet certain performance standards. Option B sounds like the best fit.

Cecilia 1 year ago

Hmm, I'm not entirely sure about this one. I'll have to think it through and see if I can eliminate any of the options that don't seem to fit the description of "service credits".

Sol 1 year ago

This seems like a straightforward question about contract terms. I'll read through the options carefully and try to identify the key differences between them.

Michal 1 year ago

I'm a bit confused by this question. The options seem to cover a range of different contract terms and payment mechanisms. I'll have to review my notes and see if I can find a clear definition of "service credits" to help me choose the right answer.

Levi 1 year ago

Okay, I've got this. The cost of capital is the correct answer - it represents the required return on funds used to finance new investments.

Eulah 1 year ago

Alright, I think I've got a handle on this. I'll start by calculating the expected increase in revenue from the $720,000 in additional credit sales. Then I'll factor in the 80% variable costs and the 20% opportunity cost to arrive at the final answer.

Roslyn 1 year ago

This looks like a straightforward cloud services question. I'll start by identifying the three cloud service models - IaaS, PaaS, and SaaS. Then I'll match those to the options provided.

Izetta 1 year ago

Hmm, I'm a bit unsure about the details of multicast traffic management in ACI. I'll need to review my notes and try to recall the key concepts.

CIPS L4M6 Exam - Topic 9 Question 28 Discussion