All L4M2 Test Inside CIPS Questions

Explanation

IT equipment is typically linked with through-life contracts. This type of contract not only deal with the specification and the price of a machinery, but also other stages such as design, manufacture, installation, in-service support, decommission and disposal. Among these stages, the design stage is when buyer's requirements are translated into technically correct specification.

Explanation

Internal stakeholders may contribute to defining needs and drafting the specification by using their technical expertise. In this scenario, IT team may consult procurement team on the technical specification of the software, including compatibility with company's current IT system.

Comprehensive and Detailed Explanation (paraphrased from CIPS L4M2 content)

Standardising from many similar products to one common product is a classic variety reduction / standardisation decision.

In CIPS L4M2, when standardisation is discussed, the benefits highlighted include:

Economies of scale – buying larger quantities of a single product allows for better prices and volume discounts.

Reduced administration and handling costs – only one product code to manage, fewer invoices and orders, simpler stock control.

Simplified quality control – one specification and one performance profile to monitor.

Because the product is available from many suppliers, competition remains strong. This supports lower prices, not higher.

Option A (Lower costs) – correct, due to economies of scale and reduced process/handling complexity.

Option B (Fewer staff) – staff numbers are driven by overall workload, not just the number of product variants; standardising doesn’t automatically cut headcount.

Option C (Increased stock levels) – if anything, standardisation often reduces safety stock (you can pool demand into one line).

Option D (Increased costs) – contradicts the expected benefits of standardisation and competition between many suppliers.

Relevant CIPS L4M2 areas:

Standardisation and variety reduction in specifications

Economies of scale and cost drivers in sourcing decisions

Managing supply markets with multiple potential suppliers