L3M3 Exam Questions and Answers | Exam-Dumps (Page: 3)

QUESTION: 11

Transfer of the rights and obligations of a contract onto a third party, is called:

Assignment
Association
Acceptance
Assignation

Answer(s): A

Explanation:

Essentially the contract is now between two different parties because one party has assigned the contract to someone else.

It's always a good idea to check whether this is permitted under a contract, otherwise you might finish up doing business with someone you didn't plan to do business with.

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QUESTION: 12

Which of the following are internal factors in supplier decision-making? Choose two.

Extent of competition in the marketplace
Cost of production
Shareholder and managerial expectations of profit
Customer perceptions of value

Answer(s): B,C

Explanation:

Cost of production, and shareholder and managerial expectations of profit, are both internal factors in decision-making. Although shareholders may be outside the firm, management will condition shareholders' expectations. Customer perception of value and the extent of marketplace competition are significantly outwith the control of the company.

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QUESTION: 13

Which of the following would not normally be part of data required by the buying organisation's contract manager?

Other customer data
Technical data
Financial data
Performance data

Answer(s): A

Explanation:

Other customer data.

It would, I think, be very unusual for a contract manager to feel it appropriate to ask for information from a supplier representative about other customers. Business partners normally want their dealings to be private. However, in informal discussions, in the normal course of conversation, information is often transferred in a benign manner.

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QUESTION: 14

A justification of an action (expenditure) that is to be taken by an organisation.

Project management
Competitive tender
Business case
Cost analysis

Answer(s): C

Explanation:

The business case will justify the expenditure.

Of the other answers offered, the only one which needs explanation presumably is 'cost analysis'.
This needs to be distinguished from 'price analysis'.

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QUESTION: 15

Looking specifically at how a quoted price compares to the cost of production is called:

Factor analysis
Price analysis
Psycho analysis
Cost analysis

Answer(s): D

Explanation:

Comparison of prices across different suppliers would be called 'price analysis'; drilling down into costs of making or doing something would be called 'cost analysis'.

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CIPS L3M3 Exam (page: 3) CIPS Contract Administration Updated on: 12-Feb-2026

QUESTION: 11

Explanation:

QUESTION: 12

Explanation:

QUESTION: 13

Explanation:

QUESTION: 14

Explanation:

QUESTION: 15

Explanation:

CIPS L3M3 Exam (page: 3)
CIPS Contract Administration
Updated on: 12-Feb-2026