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Free Access CIPS L4M5 New Release

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Total 395 questions

Commercial Negotiation Questions and Answers

Question 93

A procurement manager withholds important information to strengthen negotiating power. Is this appropriate when using an integrative negotiation style?

Options:

A.

No, because this will not discover the supplier’s resistance point

B.

No, because this is not being open about the requirement

C.

Yes, because it will discover the supplier’s resistance points

D.

Yes, because it will maximise the outcome for the procurement manager

Question 94

A skilled negotiator will use a range of questioning techniques. If they wish to explore options with the other party without making any formal commitment, which style would they use?

Options:

A.

Leading

B.

Hypothetical

C.

Reflective

D.

Multiple

Question 95

Absorption costing is when the total cost per each unit of output:

Options:

A.

Includes an allocation towards the activity cost of its creation

B.

Includes an allocation towards indirect costs used in its creation

C.

Includes an allocation for a proportion of total production costs

D.

Includes an allocation of producing an additional unit

Question 96

Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?

Options:

A.

Yes, characteristics include risk management and strategic planning

B.

No, this can be classified as adversarial

C.

Yes, characteristics include arm's length transactions and minimal communication

D.

No, collaboration does not require commitments from either side

Page: 24 / 30
Total 395 questions