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Exam L4M5 Topic 13 Question 227 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 227
Topic #: 13
Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply.

Suggested Answer: C,F Vote an answer

Explanation
Below aresome examples of cost input that can be analysed in PPCA process:
- Material costs
- Process and labour costs
- Employment costs
- Overhead costs
- Distribution costs
- Depreciation on equipment
- Profit
If you want to learn more on PPCA, you can studyfrom OGC document here:
https://webarchive.nationalarchives.gov.uk/20100609100650/www.ogc.gov.uk/documents/Cost_Price_analysis(1 LO 2, AC 2.1

by Quintina at Aug 24, 2026, 06:08 AM

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