Latest CIPS L6M9 Exam Vce - Latest L6M9 Exam Review
Latest CIPS L6M9 Exam Vce - Latest L6M9 Exam Review
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CIPS Supply Network Design Sample Questions (Q19-Q24):
NEW QUESTION # 19
Which of the following are examples of investment appraisal techniques? Select ALL that apply.
- A. Liquidity
- B. Payback period
- C. Return on investment
- D. Cash flow impact
- E. Gearing
Answer: B,C,D
Explanation:
Investment appraisal techniques help assess whether an investment, such as purchasing new machinery, is financially viable.Return on investment, cash flow impact, and payback periodare all investment appraisal methods.Liquidity and gearingassess financial health but do not determine whether to make an investment.
(See p.160)
NEW QUESTION # 20
Andrea is the Chief Financial Officer at Big Corporation and is completing aVariance Analysis. She has reviewed the production costs of creating item B, and this month's costs show avariance to budget of £-200.
What does this mean?
- A. The organisation has lost £200
- B. The organisation has gained £200
- C. Less money was spent than expected
- D. More money was spent than expected
Answer: C
Explanation:
Anegative varianceto budget means that the companyspent £200 less than expected, which is apositive outcome. While it may seem counterintuitive, a negative variance inthis context indicates cost savings rather than overspending.Option D is incorrectbecause the organisation has saved £200, not gained it. (See p.198)
NEW QUESTION # 21
Manuel has created an Efficient Frontier diagram mapping six options his organisation can take. Is it possible for there to be two curves on this diagram?
- A. No - the diagram should only have straight lines, not curves
- B. Yes - the second curve can represent what is achievable should the organisation engage in continuous improvement
- C. Yes - there should always be at least two curves on the graph to demonstrate different timescales for the options
- D. No - only one curve is needed as this plots the trade-offs and level of risk
Answer: B
Explanation:
AnEfficient Frontier diagramcan have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages in continuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.
136)
NEW QUESTION # 22
Which of the following principles considers the volume of work undertaken by a given resource within an organisation?
- A. Prioritisation
- B. Process Control
- C. Sequencing
- D. Loading
Answer: D
Explanation:
Loadingrefers to allocating work to a person or machine-essentially "loading" them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180)
NEW QUESTION # 23
An organisation may haveseveral different business-level strategies. Is thisTRUE?
- A. Yes-the different business-level strategies will contradict each other
- B. No-an organisation should only haveonestrategy, which can be likened to a 'master plan' with high- level ambitions
- C. No-effective vertical alignment between operations strategy and corporate strategy means there must only beoneorganisation-wide operations strategy
- D. Yes-different parts of the business may operate indifferent marketplacesor have different services
/portfolios
Answer: D
Explanation:
* The statement is TRUE, so we can immediatelyeliminate A and B.
* Option C is correctbecauselarge organisations often have multiple business-level strategies depending onmarket conditions.
* Example:McDonald'shasdifferent menusandmarketing strategiesin different countries.
* Option D is incorrect-business-level strategiesdo not necessarily contradicteach other.
(See LO 2.1, p.75)
NEW QUESTION # 24
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