A8 CIPS Exam

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Question: 3

Q3. Which of the following best defines the term ‘variable pricing’?

  1. A price that can, by agreement between buyer and seller, fluctuate over the length of the contract
  2. A price that is fixed for the length of the contract unless both parties agree to a change
  3. A price that covers the seller’s costs plus a mark-up to provide the seller’s profit
  4. A price that allows discount if the buyer buys more than a stated amount during the contract period.


Answer: D

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Question: 1

Q1. Which of the following should be carried out before passing an invoice for payment?

  1. Check that the details of the invoice match those of the purchase order and delivery note
  2. Check that the purchasing company has enough money to pay for the goods
  3. Check that the accounts department is able to settle the invoice in accordance with the required payment method
  4. Check that the suppliers bank account details are on the invoice.


Answer: B

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Question: 5

Q5. Which of the following would you expect to find as a fundamental part of legislation whose aim is to protect the buyer when purchasing services?

  1. The service provided must be carried out using reasonable care and skill
  2. The service provided must be fit for the purpose
  3. The service provided must be the same as is carried out for other customers
  4. The service provided must conform to any description of the service


Answer: C

Question: 4

Q4. Which of the following best describes damages as awarded by a court of law?

  1. A sum of money awarded to the injured party that gives them extra profit to compensate for the time lost during the dispute
  2. An order by the court that the defendant should pay back to the injured party any money that they might already have paid
  3. An order by the court that the defendant must complete the contract free of charge
  4. A sum of money awarded by the court to compensate the injured party by putting them in the financial position they were in before any dispute arose.


Answer: A