CIPS Level 3 Advanced Certificate in Procurement and Supply Operations Practice Questions — 10 Free (2026)

In which situation does consumption-based pricing suit a buyer best?

• A. Where usage of the product or service is likely to change over time ✓
• B. Where the requirement is fixed for the life of the contract
• C. Where the specification is still unclear
• D. Where a single supplier dominates the market
• E. Where the buyer wants the supplier to share the investment needed to develop a new service

Cloud storage, serviced office telephone calls and kilowatt hours of electricity are the examples given. The supplier's risk is attracting enough customers to spread its fixed costs at an acceptable price. CIPS Level 3 Advanced Certificate Core Study Guide, L3M1

Which combination describes a strategic supplier in Kraljic's model?

• A. Low cost impact and low risk impact
• B. High cost impact together with high risk impact ✓
• C. High cost impact and low risk impact
• D. Low cost impact and high risk impact
• E. Cost impact that varies while risk stays constant

These are the ones the organisation cannot easily do without and cannot easily replace, which is why they get the relationship management rather than the tendering. CIPS Level 3 Advanced Certificate Core Study Guide, L3M4

What follows for trade when a country's currency loses value against others?

• A. Its exports become more expensive and its imports cheaper
• B. Its exports become cheaper and its imports more expensive ✓
• C. Both exports and imports become cheaper
• D. Neither is affected until interest rates change
• E. Exports are unaffected but imports become cheaper because foreign suppliers reduce their own prices

The guide warns that a deliberate devaluation may reduce the incentive to cut costs or raise productivity. It only lifts sales for goods that are price elastic in the first place. CIPS Level 3 Advanced Certificate Core Study Guide, L3M1

Which task is characteristic of a buyer's role?

• A. Booking receipted goods into the inventory records
• B. Releasing payment to suppliers once invoices are approved
• C. Filing purchase order paperwork electronically after the event
• D. Counting physical stock held in the warehouse each quarter
• E. Negotiating the contract with the supplier that responded best ✓

The buyer's work follows the procurement cycle from the notification of a need through to the point where an agreement exists. Titles vary with the product, the category or the seniority. CIPS Level 3 Advanced Certificate Core Study Guide, L3M4

When Switzerland lifted its exchange rate ceiling against the euro in 2015, what happened?

• A. Swiss exporters gained a price advantage in the euro zone
• B. The franc appreciated sharply, undermining Swiss exporters' price competitiveness ✓
• C. Swiss growth forecasts were revised upwards
• D. Imports into Switzerland became more expensive
• E. The euro zone lost purchasing power, so demand for goods made in Switzerland rose across the region

Exporters into Switzerland gained, because the stronger franc raised import demand. The short-term growth outlook for the country was dented at the same time. CIPS Level 3 Advanced Certificate Core Study Guide, L3M1

How often should live targets be reviewed, and why as a separate exercise?

• A. Quarterly, to match the reporting cycle
• B. Whenever the supplier requests it
• C. Only at contract extension points
• D. At least annually, and as a separate exercise ✓
• E. Continuously, as part of the monthly reporting

A review may be forced by the performance system where targets are being missed, but it should also happen apart from that system, with internal stakeholders. Reviewing only when something goes wrong misses the targets that have quietly become irrelevant. CIPS Level 3 Advanced Certificate Core Study Guide, L3M3

In Kraljic's portfolio model, how are leverage suppliers positioned?

• A. Low cost impact and low risk impact on the buying organisation
• B. Low cost impact and high risk impact on the buying organisation
• C. High cost impact and high risk impact on the buying organisation
• D. No measurable cost or risk impact on the buying organisation
• E. High cost impact but low risk impact on the buying organisation ✓

A lot of money moves through them and there are plenty of alternatives, so the buyer can use competition. Utilities are the standard illustration. CIPS Level 3 Advanced Certificate Core Study Guide, L3M4

New heavy-duty vehicles averaged 80 grams of carbon dioxide per kilometre in 2019. What must the 2025 average be if the mandatory cut is 15 per cent?

• A. 60 grams per kilometre
• B. 68 grams per kilometre ✓
• C. 72 grams per kilometre
• D. 76 grams per kilometre
• E. 92 grams per kilometre

A percentage reduction target is always applied to the named base year, not to the current figure. Turning the target into an absolute number is what lets a fleet buyer write it into a specification. CIPS Level 3 Advanced Certificate Core Study Guide, L3M6

Which condition strengthens a buying group according to the model?

• A. This purchase forms a large part of what the buying group spends overall ✓
• B. The products bought are unique or heavily differentiated
• C. Switching to another supplier requires expensive test equipment
• D. The buying group is highly profitable
• E. The supply market has large fixed costs but is served by a great many small independent firms

A large purchase makes the search for cheaper alternatives worth the effort. Low profitability among buyers has the same effect, since it forces them to work harder at reducing what they pay. CIPS Level 3 Advanced Certificate Core Study Guide, L3M1

Which of these is one of the five headings of the CIPS Code of Conduct?

• A. Deliver value for money on every contract awarded
• B. Maintain accurate records of all supplier correspondence
• C. Enhance and protect the standing of the profession ✓
• D. Report annually on the organisation's carbon emissions
• E. Ensure that suppliers hold a recognised quality management accreditation

The other four cover integrity in business dealings, the eradication of unethical ones, the standing and proficiency of the profession, and compliance with the law. CIPS Level 3 Advanced Certificate Core Study Guide, L3M2