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? Joint issue resolution Closed discussion and root cause of failure Quick sharing of information Strong sense for ownership for high quality service. None 2. Signs of trust in a business relationship include all except: Real time sharing of information on needs and priorities High-performance team members feeling empowered Constant shadowing and oversight for control Clear criteria for decision making? None 3. Which is an example of the vicious circle of blame? Strong sense for ownership for high-quality service. Clear criteria for decision making Joint use resolution "I can’t act like a partner until you treat me as one." None 4. The main factor that distinguishes commercial negotiation from all other types of negotiation is: The centrality of price The team involved The fact it’s driven by personalities It is transparent None 5. Cost-saving measures include two types: Organizational and traditional Traditional and unexploited Organizational and unexploited Traditional and non- traditional None 6. Traditional cost-saving areas focus on all except: Downsizing Automation and process Reengineering Cost analysis None 7. Unexploited cost-saving areas focus on all except: Downsizing Supplier involvement Procurement Cost analysis None 8. Which three of the following are direct costs? (1) Raw materials, parts, and assemblies(2) Labor or wages for production work(3) Expenses tied to specific products, batches, or services(4) Office and factory consumables(5) Non-production staff costs (management, sales)(6) Rent, rates, insurance, and bad debt provisions 1, 2, and 4 4,5, and 6 1, 2, and 3 3, 4, and 5 None 9. Which three among following is an indirect cost? (1) Raw materials, parts, and assemblies(2) Labor or wages for production work(3) Expenses tied to specific products, batches, or services(4) Office and factory consumables(5) Non-production staff costs (management, sales)(6) Rent, rates, insurance, and bad debt provisions 3, 4, and 5 1, 2, and 3 4,5, and 6 1, 2, and 4 None 10. Semi-variable costs are costs with fixed and variable elements. Which of the following is not an example of a semi-variable cost? Water Gas Electricity Stationery None 11. ______ is a spend that can be influenced through negotiations or leverage with suppliers. Semi-variable cost High speed Tail-spend Addressability of spend None 12. Which spend should have the highest addressability, if possible? Regulations speed Suppliers mark ups and employees benefits Starting minimum wage Commodity materials inputs None 13. Understanding where and with whom your supplier spends money (or the cost breakdown) can help you: Build a value-adding procurement strategy Understand the rivalry in the supplier’s market Identify substitutes you can leverage Know when and where they can offer concessions None 14. Ray Carter coined ‘STOPS WASTE’ as a mnemonic for cost reduction. Which ten ideas are included in STOP WASTE? (1) Standardization(2) Transportation(3) Over-engineering(4) Packaging(5) Substitution(6) Weight(7) Unnecessary processing(8) Suppliers input(9) To make(10)Eliminate(11) Direct cost(12) Indirect cost 3, 4, 5, 6, 7, 8, 9, 10, and 11 , 3, 4, 6, 7, 8, 9, 10, and 12 1, 3, 4, 5, 6, 7, 8, 9, 10, and 12 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 None 15. When a factory first opens, suppliers may load overhead costs onto early buyers. As orders increase, average costs drop until they reach a low plateau. What is this low plateau called? Minimum cost Sweet spot Tail spend Low cost None 16. Buyers negotiating at the long-range average cost (LRAC) sweet spot will be in a: Unable to negotiate a better price than early or late buyers Less strong position to negotiate a better price than early or late buyers Stronger position to negotiate a better price than early or late buyers Disadvantaged position to negotiate a better price than early or late buyers None 17. What is the formula for breakeven point? Breakeven point = Fixed cost / (Price + Variable cost) Breakeven point = (Price – Variable cost) / Fixed cost Breakeven point = (Price + Variable cost) / Fixed cost Breakeven point = Fixed cost / (Price – Variable cost) None 18. What is the formula for contribution? Contribution = Price / Variable cost Contribution = Price – Variable cost Contribution = Price + Variable cost Contribution = Price × Variable cost None 19. ______ is an approach to allocating overheads where indirect costs are loaded into direct costs using an estimated allocation basis. Absorption costing Variable costing Activity-based costing Marginal costing None 20. ______ is the cost of producing an additional unit of output. For example, a supplier produces 100 units at a cost of 1005. Activity-based costing Marginal costing Absorption costing Variable costing None 21. Absorption costing may increase prices, whereas marginal costing may reduce prices. Is this statement true? Yes, it's true It’s true with absorption costing but not marginal costing No, it’s not true It’s true with marginal costing but not absorption costing None 22. A professional procurement officer may seek to persuade a supplier to price based on marginal costs rather than absorption costing. True or false? True False None 23. Costing methods include all except: Marginal or variable costing Fixed costing Activity- based costing Absorption costing None 24. ______ is the practice of varying the price for a product or service based on demand. Marginal costing Dynamic pricing Absorption costing Variable costing None 25. Which of the following is not part of traditional costing? Looks at costs allocated based on volume Provides review accounting-related information Not a true reflection of actual costs incurred Associate the cost of product with the actual effort spent None 26. Which of the following is not part of activity-based costing? Looks at costs allocated based on volume Provides actionable information for improvements Assigns costs based on resource consumption Looks at activities to determine costs None 27. When considering the total cost of supply, the following factors are important (choose five): (1) Payment terms(2) Delivery speed and lead time(3) Service level and response time(4) Key performance indicates KPI(KPIs)(5) Service level agreement(SLAs)(6) Willingness and ability(7) Provision of value-added service (e.g., unpacking, delivery to line, setup) 2, 3, 4, 5, and 6 1, 2, 3, 6, and 7 3, 4, 5, 6, and 7 1, 2, 3, 4. And 5 None 28. What is the formula for mark-up (%)? A = price-cost x 100% B =price+cost x 100% Cost price C = price-cost x 100% D= price+cost x 100% Price price B C A D None 29. How is margin calculated? A = price+cost x 100% B =price+cost x 100% Cost Cost C = price-cost x 100% D= price+cost x 100% Price price B D C A None 30. Pricing strategies used by suppliers within category management groups include: (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 1, 2, 3, 4, and 7 2, 3, 4, 5, and 6 3, 4, 5, 6, and 7 1, 2, 3, 4, and 5 None Please proceed to view your grade. Fingers crossed🤗 Time's upTime is Up!
