Question 1

Which of the following approaches to cost is the least transparent?

Options :

A : price management

B : price acceptance

C :

cost down

D : cost out

Answer: B

Question 2

What is the purpose of a Category Board?

Options :

A :

to select the Category Manager

B : to approve spending over a certain amount

C : to develop and implement a category strategy

D : to mitigate all risks

Answer: C

Question 3

According to studies completed by Reeves, Moose and Venema in 2014, which of the following was proven to be true with regards to the BCG matrix?

Options :

A :

companies nowadays have more 'cash cow' items than in the past

B : products move through the four quadrants faster nowadays than in the past

C : there is a higher correlation between share leaders and profit leaders nowadays than in the past

D : there is a longer time between innovation and adoption nowadays than in the past

Answer: B

Question 4

What is contract leakage?

Options :

A : when spend with a supplier is more than was stated in the contract

B : when spend with a supplier is less than was forecast

C : the gap between proposed KPI levels and those actually achieved by the supplier over the course of a contract

D : the gap between benefits identified in the pre-award stage of the contract and those actually achieved

Answer: D

Question 5

In order for Category Management to be a success, it is important to have business commitment and stakeholder buy-in. Is this TRUE?

Options :

A :

Yes- if the organisation is to realise the benefits of Category Management, it must be fully endorsed and supported by top management

B : Yes- Category Management is a tactical approach to sourcing and therefore requires cross-functional teamworking to succeed

C : No- Categories can work independently of each other and therefore do not require stake-holder buy-in.

D : No- business commitment is only required for high spend categories

Answer: A

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