CIPS Commercial Negotiation - L4M5 FREE EXAM DUMPS QUESTIONS & ANSWERS
Which of the following is important during the proposing stage of a negotiation?
Correct Answer: C
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Which of the following is a disadvantage of absorption costing method?
Correct Answer: B
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Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?
Correct Answer: A
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The buyer's bargaining power tends to be relatively higher than supplier's bargaining power in which of the following circumstances?
Correct Answer: C
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Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.
Correct Answer: A,D,E
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Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company's largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG's performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative,
"Can you tell me exactly what you are doing to ensure quality?" What type of question is Lina asking?
"Can you tell me exactly what you are doing to ensure quality?" What type of question is Lina asking?
Correct Answer: A
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A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?
Correct Answer: A
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An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 months would be beneficial for the company. Would this be a right thing to do?
Correct Answer: D
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Which factors give rise to conflict within the procurement negotiation context? Select THREE that apply.
Correct Answer: A,C,D
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During a negotiation, the supplier requests for payment term shortened to 45 days from 60 days. Seeing that this proposal lies within the concession plan, the procurement manager asks for 5% discount in return. Is that right thing to do?
Correct Answer: C
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In order to mitigate all risks involved in the negotiation process, the buyer only needs to undertake pre- negotiation research on the supply market and establish a BATNA. Is this a correct suggestion?
Correct Answer: C
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Which one of these key approaches could be pursued for a successful negotiation of a commercial agreement?
Correct Answer: C
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XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, or may not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?
Correct Answer: B
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