THREE CIPS L6M5 EXAM PRACTICE QUESTIONS FORMATS

Three CIPS L6M5 Exam Practice Questions Formats

Three CIPS L6M5 Exam Practice Questions Formats

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CIPS Strategic Programme Leadership Sample Questions (Q40-Q45):

NEW QUESTION # 40
Why would a company use a discounted cash flow in calculating an Investment Appraisal? Select all that apply

  • A. to provide a buffer to the budget
  • B. to accurately compare two projects which will last a different number of years
  • C. to account for the time value of money
  • D. to account for time delays in completing a programme
  • E. to ensure the correct amount of money is invested in the programme

Answer: B,C

Explanation:
Discounted cash flow accounts for the time value of money and allows for an accurate comparison of projects with different durations.


NEW QUESTION # 41
Fire Light Corporation has secured a contract to design a new bridge for a local council. The council wants a price set in advance but allows for minor adjustments due to unforeseen circumstances. Which pricing mechanism is most suitable?

  • A. bill of quantity
  • B. fixed lump sum
  • C. target costing
  • D. firm fixed price

Answer: B

Explanation:
A fixed lump sum contract sets the price in advance while permitting small adjustments if necessary.


NEW QUESTION # 42
Sarah is a Project Manager running a project to create a new type of shoe that is sensitive due to intellectual property issues. She is undergoing Programme Level Control. What is the purpose of Programme Level Control?

  • A. to provide additional resources to ensure the project is completed on time
  • B. to track how much money the project has spent
  • C. to ensure the project remains a secret
  • D. to ensure the project is running to the allocated budget

Answer: A

Explanation:
Programme Level Control is used to ensure that adequate resources are allocated to complete the project on time.


NEW QUESTION # 43
Danger Incorporated is estimating the costs for a new project called the Ninja Project using an algorithm based on the project's scope, duration, and complexity. What type of cost estimate is being used?

  • A. bottom-up
  • B. analogous
  • C. parametric
  • D. expert judgement

Answer: C

Explanation:
Using an algorithm based on key parameters is characteristic of a parametric cost estimate.


NEW QUESTION # 44
Which of the following is true about Engineering, Procurement, and Construction (EPC) Contracts? (Select all that apply.) EPC contracts, commonly referred to as Turnkey Projects, are widely used in construction and infrastructure projects. These contracts require the contractor to design, procure materials, and construct the project to deliver a complete and operational facility to the client.
Answer Options:

  • A. These contracts are commonly known as Turnkey Projects
  • B. These contracts are sometimes referred to as Design and Build Contracts
  • C. The contractor may operate the building for a certain period after completion
  • D. These contracts are used when forming a partnership between a private and public organization
  • E. The contractor is responsible for the design aspect of the construction

Answer: A,B,E

Explanation:
The correct answers are 1, 3, and 4 (p.8). Option 2 is incorrect as it describes a DBO (Design-Build-Operate) contract rather than an EPC contract. Option 5 is incorrect because it describes a PPP (Public-Private Partnership) contract, not an EPC contract. [P.8]


NEW QUESTION # 45
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