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Obtained The L4M5 Reliable Exam Test Means Passing The Commercial Negotiation

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CIPS Commercial Negotiation Sample Questions (Q54-Q59):

NEW QUESTION # 54
Which of the following is a disadvantage of absorption costing method?

A. Using marginal cost of producing addition units
B. Variable costs are not taken into product final costs
C. Fixedcost allocated to products on the basis of the cost of activities used in producing them
D. Limited understanding of true costs incurred

Answer: D

Explanation:
Absorption costing is an approach to allocating overheads in which indirect costs are loaded or absorbed into direct costs related to specific jobs, processes or outputs, using an estimated basis of allocation.
Graphical user interface, text, chat or text message, website Description automatically generated

NEW QUESTION # 55
A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced by other substitutes in the market. The negotiation for these products is typified by which of the following?

A. There will be only limited negotiation
B. There will be regular structured negotiations
C. The approach must be collaborative
D. The buyer should focus on wider costs and risk elements

Answer: A

Explanation:
Explanation
With non-critical commodity products, the relationship will be transactional. Buyer should not spend too much time and effort into the negotiation.
Table Description automatically generated

LO 1, AC 1.4

NEW QUESTION # 56
How contribution is calculated in break-even analysis?

A. Price minus fixed costs
B. Fixed costs divided by variable costs
C. Variable costs subtracted from price
D. Variable costs subtracted from fixed costs

Answer: C

Explanation:
:
Contribution = Price - Variable cost
Break-even point (volume) = Fixed cost/Contribution

NEW QUESTION # 57
Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?

A. Yes, the role of procurement is to ensure that the technical specifications are fit for purpose
B. No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes
C. Yes, and the budget holder is the most important one because of the finances involved
D. No, only procurement, the user, and suppliers have an interest in the products negotiated

Answer: B

Explanation:
Other stakeholders, including directors, IT, and finance departments, often have an interest in procurement negotiations, particularly when the contract impacts strategic objectives, IT infrastructure, or organizational operations. This broader stakeholder involvement aligns with CIPS's emphasis on inclusive stakeholder management in procurement to ensure well-rounded decision-making.

NEW QUESTION # 58
A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

A. Leading
B. Closed
C. Reflective
D. Hypothetical

Answer: D

Explanation:
Hypothetical questionsare used to explore scenarios or options without making a commitment. For example, asking "What if we were to increase the order volume?" encourages creative thinking and testing potential agreements without binding either party. This technique is valuable in theproposing and bargaining stagesof negotiation to explore trade-offs and build mutual solutions.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.3 - Effective Questioning Techniques in Negotiation

NEW QUESTION # 59
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Obtained The L4M5 Reliable Exam Test Means Passing The Commercial Negotiation

L4M5 Reliable Exam Test - 100% Pass Realistic CIPS Commercial Negotiation Latest Test Fee

CIPS Commercial Negotiation Sample Questions (Q54-Q59):

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