Pass Guaranteed Quiz CIPS L4M5 - New Commercial Negotiation Test Blueprint

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CIPS L4M5 Exam is suitable for procurement professionals at all levels, from entry-level buyers to senior procurement executives. It is particularly relevant for individuals who are responsible for managing complex procurement projects, negotiating large-scale contracts, or dealing with high-value purchases. Commercial Negotiation certification is also well-suited for individuals who work in industries where negotiation skills are critical, such as construction, engineering, and manufacturing.

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CIPS Commercial Negotiation Sample Questions (Q304-Q309):

NEW QUESTION # 304
In preparation for holding negotiation meetings with existing suppliers, category manager Stephen would like to appraise the bargaining strength of his organisation. Which of the following are examples of buyer power?
Select TWO that apply:

A. High barriers of entry exist for new suppliers
B. Buyer is large in size relative to suppliers
C. Suppliers are limited in number
D. Collusion between competitor suppliers
E. Ability to easily switch suppliers

Answer: B,E

Explanation:
Reference: CIPS L4M5 Study Guide, Section 2.3 - Market Factors and Analysis

NEW QUESTION # 305
Which of the following is a disadvantage of absorption costing method?

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

Answer: A

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.
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NEW QUESTION # 306
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. Reflective
C. Hypothetic
D. Multiple

Answer: C

Explanation:
Hypothetical questions are used to explore options or scenarios without making commitments. This technique allows negotiators to understand the other party's preferences and limitations by presenting hypothetical situations, as recommended in CIPS guidelines for negotiation questioning techniques.

NEW QUESTION # 307
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. Hypothetical
C. Reflective
D. Closed

Answer: B

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 # 308
Which of the following is categorised as fixed cost?

A. Land rental paid in advance
B. Governments taxes
C. Raw materials for next year production
D. Additional pallet hires due to higher demand in year-end season

Answer: A

Explanation:
:
An organisation's expense can be categorised into three groups:
Fixed Costs - costs that do not change with output.
Variable Costs - costs that vary in direct proportion to output.
Semi-variable costs - costs that are a combination of the above, with both a fixed and variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won't increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.

NEW QUESTION # 309
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Pass Guaranteed Quiz CIPS L4M5 - New Commercial Negotiation Test Blueprint

CIPS L4M5 Questions: Defeat Exam Preparation Stress [2025]

CIPS Commercial Negotiation Sample Questions (Q304-Q309):

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