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CIPS Level 4 Diploma in Procurement and Supply L4M5 Full Course Free

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Total 395 questions

Commercial Negotiation Questions and Answers

Question 81

Which of the following can be prepared before negotiation to achieve an agreement that benefits both parties?

Zone of potential agreement (ZOPA)

Attendee list

Walk-away point

Venue for the talks

Options:

A.

1 and 2

B.

1 and 3

C.

3 and 4

D.

2 and 3

Question 82

Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

Options:

A.

ABC provides the information required to take action and realise improvements

B.

Limited understanding of true costs incurred

C.

ABC has tended to over cost products on long runs and under cost those on short runs

D.

Costs are allocated based on volume

E.

Variable and all related overhead expenses are specifically assigned to a business activity

Question 83

A buyer requests a £2,000 reduction in price at the end of negotiations. The supplier nods and smiles, shakes hands, and leaves. Should the buyer believe the reduced price is agreed?

Options:

A.

Yes, the nod and smile indicate agreement

B.

Yes, as that was the last counter-offer so it will stand

C.

No, a non-verbal cue isn’t sufficient to assume agreement

D.

No, at least four verbal cues are required to confirm agreement

Question 84

Maria, an NHS buyer, needs cost savings due to budget cuts. She plans to achieve savings with a collaborative supplier. Which negotiation approach should she use?

Options:

A.

Win–Lose

B.

Lose–Lose

C.

Win–Perceived Win

D.

Win–Win

Page: 21 / 30
Total 395 questions