CIPS Commercial Negotiation – L4M5 paper *10 Leave a Comment / By Admin / September 3, 2024 Before you begin ✍️ You are about to practice the questions set for CIPS Commercial Negotiation – L4M5 paper *10. Please put away any distractions and focus all your efforts on passing. ⏱️Time limit: 1 hour 30 minutes At the end of your examination practice, you will 📝 View your grade ✅ View the correct answers NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification. To begin your exam practice, wait a few seconds for the start button to appear, then tap the START button. "We're rooting for you all the way!" All the best. 😃 1. Trust/ partnership- building behavior include all except? Strong sense for ownership for high quality service. Quick sharing of information Joint issue resolution Closed discussion and root cause of failure None 2. Signs of trust of business relationship include all the following except? Clear criteria for decision making? High-performance team members that feel empowered to get the job done. Constant shadowing and oversight focus and control. Real time sharing of information on needs and priorities None 3. Which is an example of the vicious circle of blame? I can’t start acting like a partner until you treat me like one. Joint use resolution Clear criteria for decision making Strong sense for ownership for high-quality service. None 4. The main factor that distinguishes commercial negotiation from all other negotiation, Is the team involved? It is transparent Is the fact that it’s being lead by personalities? Is the centrality of the price element? None 5. Cost saving include two measures Traditional and non- traditional Traditional and unexploited Organizational and unexploited Organizational and traditional None 6. Traditional areas focuses in cost serving measures include all except? Reengineering Cost analysis Downsizing Automation and process None 7. Unexploited areas in cost savage measures include all except? Downsizing Cost analysis Procurement Suppliers involvement None 8. Which three among the following is a direct cost? (1) Materials and services bought-in: Raw materials, parts and assemblies(2) Labor or wages: Money paid to staff for the work involve in producing the product(3) Expenses: Other changes incurred that can be attributed to particular product, batches or services.(4) Materials and services not used in production: office and factory consumables (Parts for machinery, stationery, some spare)(5) Labor: All staff costs not directly attributed to production; such as management, sales and marketing(6) Expenses: Rent, rate, insurance for plant and machinery allowance for bad debts 4,5, and 6 1, 2, and 3 1, 2, and 4 3, 4, and 5 None 9. Which three among following is an indirect cost? 1) Materials and services bought-in: Raw materials, parts and assemblies(2) Labor or wages: Money paid to staff for the work involve in producing the product(3) Expenses: Other changes incurred that can be attributed to particular product, batches or services.(4) Materials and services not used in production: office and factory consumables (Parts for machinery, stationery, some spare)(5) Labor: All staff costs not directly attributed to production; such as management, sales and marketing(6) Expenses: Rent, rate, insurance for plant and machinery allowance for bad debts 1, 2, and 4 1, 2, and 3 3, 4, and 5 4,5, and 6 None 10. Semi-variable costs are costs that have a fixed cost and variable cost elements. Which of the following is not an example of semi-variable cost? Water Stationeries Electricity Gas None 11. ---- Is a spend that is influencable through negotiations or application of other savings effort or leverage with suppliers High speed Tail-spend Addressability of spend Semi-variable cost None 12. which spend should have the highest addressability if any is possible? Commodity materials inputs Regulations speed Starting minimum wage Suppliers mark up and employees benefit None 13. Understanding where and with whom your supplier spends the money or understanding the ‘cost break down or price build up’ of the goods and services you purchase from a supplier----- Will help you understand the rivalry in the suppliers market Will help you build up a value adding procurement strategy Will help you know where when and they can offer concessions Will help you identify substitute you can leverage the market None 14. Ray Carter coined the useful mnemonic ‘STOPS WASTE’ to reined buyers of ten cost reduction ideas they can ask themselves and suppliers in any situation when considering a true purchased input. Which ten among the following makes up STOP WASTE (1) Standardization(2) Transportation(3) Over-engineering(4) Packaging(5) Substitute(6) Weight(7)Any unnecessary processing(8) Suppliers input(9) To make(10)Eliminate(11) Direct cost(12) Indirect cost 1, 3, 4, 5, 6, 7, 8, 9, 10, and 12 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 3, 4, 5, 6, 7, 8, 9, 10, and 11 , 3, 4, 6, 7, 8, 9, 10, and 12 None 15. when a factory first opens there will be significant overheads or fixed cost to recoup, so suppliers may seek to load as much of the overhead as possible onto the early buyers if they can. As the factory wins more orders, the average cost drops until they reach a low plateau. What is this low plateau called? Tail spend Sweet spot Low cost Minimum cost None 16. Buyers negotiating at where long-range average cost (LRAC) is at lowest –sweet spot will be in a ----- Less strong position to negotiate more favorable price than the early or late buyer Will not be able to negotiate more favorably price as early or late buyer Stronger position to negotiate more favorably price than early or late buyer Disadvantage position to negotiate more favorably price than the early or late buyer None 17. what is the formula for breakeven point Breakeven point = (Price –variable cost)/ fixed cost Breakeven point = (Price + variable cost)/ fixed cost Breakeven point= Fixed cost (price+ valuable cost) Breakeven point= Fixed cost/(price-valuable cost) None 18. what is the formula of contribution? Contribution = price/variable cost Contribution = price - variable cost Contribution = price + variable cost Contribution = price X variable cost. None 19. -------is an approach to allocating overheads in which indirect cost are loaded in to direct costs related to specific jobs, process or outputs using an estimated bases of allocation Variable costing Absorption costing Marginal costing Activity based costing None 20. ------- Is the cost of producing an additional unit of output for example, supposing a supplier produces a 100 unit of cost of $1000, and a cost of making 101 units is $1005 Marginal costing Variable costing Absorption costing Activity based costing None 21. Absorption cost making may increase the goods, whereas, marginal, costing may reduce the price. Is the above statement true? It is true with absorption costing but not with marginal costing Yes, it is a true statement It is true with marginal costing, but not with absorption cost No, it is completely not true None 22. A professional procurement officer, when negotiating with suppliers may seek to persuade the supplier to set price that covers the marginal costs only, rather than adopt absorption costing (true or false) True False None 23. Costing methods involve the following Except? Absorbtion cost Activity- based costing Marginal or variable costing Fixed costing None 24. ------ is the practice of varying the price for a product or service to reflect conditions in particular the charging of a higher price of a greater demand. Marginal costing Variable costing Absorption costing Dynamic pricing None 25. which of the following is not part of the traditional costing? Associate the cost of product with the actual effort spent? Limited understanding of true costs incurred, provides review accounting-related information. Not a true reflection of actual cost of product or services. Looks at what is spent/cost are allocated based on volume None 26. which of the following is not part of activity-based-costing? Assignment costs to activity based on the resources they consumes Provides the information required to take action and realize improvements Looks at what is spent/cost an allocated on volume. Looks at what is done in terms of activities None 27. Even in the case of items that are used up directly or indirectly in production, there are factors that need to be considered when considering the total cost of supply. Choose the five that are applicable (1) Payment terms(2) Delivery speed and lead time(3) Service level and response time(4) Key performance indicates KPI(5) Service level agreement SLA(6) Willingness and ability(7) Provision of value-added service e.g. unpacking delivery to line, set-up 1, 2, 3, 6, and 7 2, 3, 4, 5, and 6 1, 2, 3, 4. And 5 3, 4, 5, 6, and 7 None 28. what is the formula of mark-up (%)? B D A C None 29. How is margin calculated? B D A C None 30. pricing strategies used by suppliers for items and/or services within category management groups include five of the following choose those that applies: (1) Cost-plus pricing(2) Premium pricing(3) Premium pricing(4) Penetration pricing(5) Total life costing(6) Total cost of acquisition(7) Market pricing 3, 4, 5, 6, and 7 2, 3, 4, 5, and 6 1, 2, 3, 4, and 7 1, 2, 3, 4, and 5 None Your comment matters to us😊. Please share your experience. Please proceed to view your grade. Fingers crossed🤗 Time's upTime is Up!
