CIPS Strategic Programme Leadership - L6M5 Exam Practice Test

Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
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Salvador Ltd is a manufacturer of batteries for domestic appliances and hand tools. The company recently expanded due to excellent sales and introduced new machinery for producing solar-powered batteries.
They contracted Sunshine Ltd to build and install the machinery.
The contract specified that the machine must produce 5 batteries per hour, but currently, it is producing only 4 batteries per hour.
Salvador Ltd has agreed to work with Sunshine Ltd to resolve the issue within one month before liquidated damages apply.
Q: What stage is the project at?
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Glitter Kitten Ltd is considering two expansion options. The CEO wants a quick analysis and uses the Payback Method.
Q: What financial metric is the leadership team using for expansion?
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In a fixed lump sum contract, this pricing mechanism does not allow for any changes in price. Is this statement TRUE?
Fixed lump sum contracts are widely used in construction and infrastructure projects.
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Casper is conducting a Variance Analysis of the company's budget. What is its main purpose?
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Ali is a team manager at his organisation and has been instructed by senior leadership to implement a change that requires his staff to come into the office an hour earlier than usual. Although he knows the change won't be popular, he plans to tell his team that the change will start next month and insinuate that non-compliance may affect promotion eligibility. What type of influence is Ali exerting?

Skipped
An End-Of-Project Review may include the hiring of an external consultant to audit a project. This is particularly true in the Public Sector and for high-value/high-risk projects. The Auditor is likely to review the project's performance against what?

XYZ is a large construction organization running five different projects. Each project has a specific type of contract and pricing mechanism.
Your task is to match the correct type of contract and pricing mechanism to each project.
Projects and Descriptions
Project 1
Description: Construction of an apartment block, where XYZ is responsible for both design and construction. Upon completion, ownership is transferred to the client.
Pricing Mechanism: Based on past experience of similar projects.
Project 2
Description: Facilities management for a 6-year period after construction. The budget is constantly adjusted due to industry volatility.
Pricing Mechanism: Budget changes continuously over time.
Project 3
Description: XYZ was involved from an early stage, but does not bear the design risk. The budget resets at the start of each new accounting period.
Pricing Mechanism: The budget is refreshed periodically.
Project 4
Description: XYZ is responsible for certain parts of the design and build, while another company handles other aspects. XYZ is paid upon milestone completion.
Pricing Mechanism: Payment is milestone-based.
Project 5
Description: Construction of a new toll bridge which will be operated by XYZ for the first 6 years post-construction. The pricing includes costs of raw materials, labor, and a profit margin.
Pricing Mechanism: Costs plus profit.

Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: £50m
Annual returns: £10m
Q: What is the payback period?
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