CIPS L5M4 practice materials Questions Answers
Exam Code:
L5M4
Exam Name:
Advanced Contract and Financial Management Exam
Last Update:
Jun 01,2026
43 Questions Answers Verified by Experts!
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CIPS L5M4 Questions for Level 5 Advanced Diploma in Procurement and Supply Certification Exam 2026
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Advanced Contract and Financial Management Exam L5M4 practice questions with explanations
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Total Questions: 43
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SIMULATIONDescribe 5 ways in which you could track the performance of a services contract such as the provision of IT services to an office. (25 marks)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONApart from cost and quality, what other criteria could be used to assess a supplier to ensure they area good fit for your organisation? Describe 5 criteria (25 marks)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONA company is keen to assess the innovation capacity of a supplier. Describe what is meant by 'innovation capacity' and explain what measures could be used. (25 marks)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONPeter is looking to put together a contract for the construction of a new house. Describe 3 different pricing mechanisms he could use and the advantages and disadvantages of each. (25 marks)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONDescribe the SERVQUAL model that can be used to assess quality in the service industry (15 points). What are the advantages of using the model? (10 points)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONExplain what is meant by a ‘commodity’ (8 points) and why prices of commodities can be characterized as ‘volatile’ (17 points)
Answer: S,e,e, ,t,h,e Next Question -
SIMULATIONXYZ Ltd is a manufacturing organisation who is looking to appoint a new supplier of raw materials. Describe 5 selection criteria they could use to find the best supplier. (25 marks)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONDiscuss ways in which an organization can improve their short-term cash flow (25 points)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONDescribe three ways in which an organization can encourage a healthy short-term cash flow by engaging in the effective management of debtors and credit management (25 points)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question -
SIMULATIONABC Ltd wishes to implement a new communication plan with various stakeholders. How could ABC go about doing this? (25 points)
Answer: S,e,e, ,t,h,e, ,a,n,s,w,e,r, ,i,n Next Question
Total Questions: 43
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