L4M5 Exam Dumps : Commercial Negotiation

The agreement and closing phase is the phase when it is either clear through explicit language, or strongly suggested through non-verbal signals, that TOP is ready to move to agreement. Judging when to close can be difficult and as with phases of the negotiation, experience, observation, practice and reflection will be the best ways to learn here.

In the closing phase, procurement should:

- Watch for closing/buying signals

- Check to ensure all issues have been resolved

- Consider using visual aids to summarise

- Use 'summary close'

- Make a decision to conclude/close

- Seek agreement in principle if TOP does not have the final authority

- Make your own private notes on the final agreement

- Shake hands on the agreement

- Leave the meeting as soon as possible thereafter.

LO 3, AC 3.1

Direct costs are those costs of a product/service directly attributable/traceable to its production, for example, the costs of labour and materials directly used to produce the goods/services which the organisation sells.

Elasticity refers to the responsiveness of quantity demanded or quantity supplied to a change in price or another factor:

The price of a product can be described as being elastic if a small change in price leads to a big change in demand.

The price of a product can be described as being inelastic if a big change in price leads to a small change in demand.

The formulae of elasticity of demand is known as the following:

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