CIPS L3M3 Exam Dumps

Get All Contract Administration Exam Questions with Validated Answers

L3M3 Pack
Vendor: CIPS
Exam Code: L3M3
Exam Name: Contract Administration
Exam Questions: 90
Last Updated: August 21, 2026
Related Certifications: Level 3 Advanced Certificate in Procurement and Supply Operations
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Free CIPS L3M3 Exam Actual Questions

Question No. 1

What do we call the point when the supply firm makes neither a profit nor a loss ie where all costs are covered yet no profit is made?

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Correct Answer: B

Breakeven point. The firm breaks even: covers all of its fixed costs. At this point the firm has made neither a profit nor a loss, and hopefully is about to enter profitability.


Question No. 2

The official power to make legal decisions and judgments in a given location, for example

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Correct Answer: D

Jurisdiction.

American movies seem to spend half the time with law enforcement people arguing about who has jurisdiction.

Jurisprudence means the theory or study of law; Jurassic is about an age.

de jure means practices which are legally recognised, as opposed to de facto which is about the reali-ty (Wikipedia).


Question No. 3

In the written presentation of a business case, a brief explanation of everything in the case, includ-ing the ultimate recommendation, aimed at people (eg senior managers) who have little time to plough through the details.

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Correct Answer: D

The Executive Summary summarises the situation for busy executives to save them working all the way through the detail.

The summary needs to be very well written, accurately reflective of the entire document, and in-clude the key points needed to make a balanced decision.

The executive summary should be written last of all the sections, and is often the only part of a document which will be read.


Question No. 4

What is the name given to costs which do not vary as activity levels in a business increase or de-crease?

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Correct Answer: D

The answer is fixed costs. Their counterpart are variable costs, which do vary as business activity increases or decreases.

Direct and indirect costs are a different method of categorizing costs within an organisation.


Question No. 5

In which year did the United Nations issue the Universal Declaration of Human Rights?

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Correct Answer: C

1948 is the correct answer: the UN issued the UDHR in 1948, three years after the end of World War 2.

More than 70 years later, we know that in many supply chains, there are individuals' human rights being breached, for example, in modern slavery.

CIPS is strongly opposed to modern slavery, and we should do our utmost to eradicate such prac-tices within our supply chains.


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