PASS GUARANTEED QUIZ 2025 L4M5: FANTASTIC COMMERCIAL NEGOTIATION VALID BRAINDUMPS EBOOK

Pass Guaranteed Quiz 2025 L4M5: Fantastic Commercial Negotiation Valid Braindumps Ebook

Pass Guaranteed Quiz 2025 L4M5: Fantastic Commercial Negotiation Valid Braindumps Ebook

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CIPS Commercial Negotiation Sample Questions (Q69-Q74):

NEW QUESTION # 69
A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits.
Supplier's mark-up and employee benefits are examples of which of the following?

  • A. Spend cube
  • B. Spend waterfall
  • C. Addressable spend
  • D. Spend tree

Answer: C

Explanation:
Explanation
A key consideration when seeking to negotiate prices is to establish what proportion of the spend is addressable by procurement action such as negotiation. Addressability of spend is influenceable through negotiations or application of other saving effort or leverage with suppliers.
LO 2, AC 2.1


NEW QUESTION # 70
A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach. Which of the following describes emotional intelligence?

  • A. An individual's ability to gain leverage by persuading the other party to agree to their terms
  • B. An individual's ability to understand their own feelings and those of other people
  • C. An individual's ability to fully understand another party's cost drivers and profit margins
  • D. An individual's ability to place themselves in a position of authority during a negotiation

Answer: B

Explanation:
Emotional intelligence involves the ability to recognize and manage one's emotions and empathize with others. This skill allows negotiators to respond appropriately to both their own feelings and the emotional cues of the other party, fostering a more constructive and adaptive negotiation environment. CIPS highlights emotional intelligence as a valuable asset in understanding and influencing negotiation dynamics.


NEW QUESTION # 71
Which of the following are most likely to help buyer become preferred customer in supplier's perspective?
Select TWO that apply.

  • A. Ensuring an increased number of repeat orders
  • B. Compliance with agreed repair lead time
  • C. Shorter payment period
  • D. Onerous supplier terms and conditions
  • E. Reduction in delivery errors

Answer: A,C

Explanation:
Explanation
Becoming a preferred customer to supplier's perspective can increase the purchaser's leverage in negotiation.
Beside the size of buying organisation or its spend, the following may be sufficient to differentiate the buyer from other buying organisations:
- Simple procurement processes
- Simple contracting processes
- Clear and concise documentation
- Absence of onerous supplier terms and conditions (onerous supplier terms and conditions mean that obligations imposed on suppliers are greater than their gains)
- On-time payment: The reduction in hassle for both supplier and the buyer, if bills are paid on time, is significant. From the customer's perspective it could also be the opener to agreeing preferential payment terms. A supplier may weigh up that payment on time at 60 days is worth taking, over the current 30-day terms that slip to 90 days and beyond.
-Transparent processes
- Ethical behavior
LO 1, AC 1.3


NEW QUESTION # 72
Absorption costing is when the total cost per each unit of output:

  • A. Includes an allocation of producing an additional unit
  • B. Includes an allocation for a proportion of total production costs
  • C. Includes an allocation towards the activity cost of its creation
  • D. Includes an allocation towards indirect costs used in its creation

Answer: D


NEW QUESTION # 73
Which of the following are rules of attentive listening? Select TWO that apply.

  • A. React to the person who is speaking
  • B. Listen deliberately
  • C. Only focus on verbal cues
  • D. Do not interrupt when the other party is speaking
  • E. Prepare for what to say next

Answer: B,D

Explanation:
Hearing is passive but listening is active, and some people need to learn to be a good, attentive listener. The following rules of attentive listening will help you to become a successful negotiator:
* Be motivated to listen
* Be alert to non-verbal cues
* Do not interrupt the other party when they are speaking
* Fight off distractions
* Write everything down
* Listen with a goal in mind
* Give the other party your undivided attention
* React to the message, not the person
LO 3, AC 3.3


NEW QUESTION # 74
......

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