L4M5 Exam Questions Dumps, Selling CIPS Products [Q64-Q86]

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L4M5 Exam Questions Dumps, Selling CIPS Products

L4M5 Cert Guide PDF 100% Cover Real Exam Questions

CIPS L4M5 Exam Syllabus Topics:

Topic	Details
Topic 1	How behaviours should change during the different stages of a negotiation Compare the key communication skills that help achieve desired outcomes
Topic 2	Building relationships based on reputation, and trust Repairing a relationship The relationship spectrum
Topic 3	Team management and the influence of stakeholders in negotiations Definitions of commercial negotiation
Topic 4	Macroeconomics and its influence on commercial negotiations Contrast the economic factors that impact on commercial negotiations
Topic 5	How purchasers can improve leverage with suppliers The importance of power in commercial negotiations
Topic 6	Organisational power: comparing the relative power of purchasers and suppliers Explain how the balance of power in commercial negotiations can affect outcomes
Topic 7	Analyse the application of commercial negotiations in the work of procurement and supply Negotiation in relation to the stages of the sourcing process

NEW QUESTION 64
Personal power is only used in distributive approach. Is this statement true?

Yes, because only distributive approach to negotiation requires strong personal power

No, because personal power can be veryhelpful in integrative approach

No, because only organisational power will optimise the negotiation outcomes

Yes, because one party will abuse coercive power to maximise the gain

NEW QUESTION 65
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.

Purchase of aircraft

Catering services

Advertising and promotion

Flightcrew training

Fuel

NEW QUESTION 66
A procurement professional is preparing for anegotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?

MIL

RAQSCI

TIMWOOD

PPCA

NEW QUESTION 67
Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.

Cleaning services

Coal

Seniormanagement salary

Insurance for production lines

Scrap metal

Hourly production wages

NEW QUESTION 68
Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?
1. Spend candlesticks
2. Spend tree
3. Aggregate expenditure model
4. Spendwaterfall

2 and 4 only

3 and 4 only

1 and 2 only

1 and 3 only

NEW QUESTION 69
Which of thefollowing is the purpose of using stakeholder support level scale?

To identify stakeholder level of influence and interest and plot them on stakeholder map

To identify stakeholder’s needs and expectations

To estimate the gap and the progress towards desired levels of support

To identify key stakeholders

NEW QUESTION 70
To buying organisation, savings can be achieved from different saving levers or tactics. Which of the following are means that deliver savings through optimising specifications?

Value engineering

Part substitution

Budgetlinkages

Compare total cost of ownership

Volume pooling

NEW QUESTION 71
Which type of power is considered the opposite of coercive power?

Referent power

Informational power

Reward power

Expert power

NEW QUESTION 72
Which of these personal power bases stems from the manager’s position in the organisation and the authority that lies in that position?

Coercive power

Legitimate power

Expert power

Reward power

NEW QUESTION 73
An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

Directive

Persuasive reasoning

Coalition

Visionary

NEW QUESTION 74
Which of the following are most likely to be the potential cultural differences that can make transactions with an international supplier more problematic that with local suppliers? Select TWO that apply.

Incoterms and logistics difficulties

The use and interpretation of body language

Currency exchange fluctuation

The importance of timescales

Payment mechanism

NEW QUESTION 75
Which of the following isthe definition of safety margin?

The difference between current or forecasted sales and sales at the break-even point

The amount of revenue that remains after subtracting costs directly associated with production

The production level at which total revenues for a product equal total expenses

The incremental money generated for each product/unit sold after deducting the variable costs

NEW QUESTION 76
It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation? Is this assumption true?

No, because supplier’s bank will take risks from currency fluctuation

Yes, because thesupplier’s currency will lose its value overtime

Yes, because buyer has more advantage if they make payment in their own currency

No, because the higher the inflation rate, the stronger the supplier’s currency

NEW QUESTION 77
Should a buyer use closed questions in a negotiation?

Yes, because closed questions help to reconfirm certain facts

Yes, because they urge the supplier to provide more detailedExplanation::

No, the buyer should maximise the use of open questions

No, supplier will consider closed questions as provocation

NEW QUESTION 78
Which of the following types of questions should be used most often in the proposing phase?

Hypothetical questions

Probing questions

Closed questions

Open questions

NEW QUESTION 79
SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients.
To some suppliers, SBL spendclaims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

Charge a higher price to compensate for all the pain SBL has put

Win and keep business with SBL at any costs, even without profits

Drop the business with SBL immediately

Hold on and keep SBL happy but make sure that the business is profitable

NEW QUESTION 80
Which of the following should be done by the procurement team at the closing stage of a negotiation? Select TWO that apply.

Gloat publicly about the deal

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

Tell TOP that they could have got a better deal

Accept ambiguity or uncertainty

Leave the meeting as soon as possible

NEW QUESTION 81
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

Conducting transparent procurement process

Over-inflated contingency funds

Allowing supplier to involve in early product development

Commercial espionage

Tendency to blame other party

NEW QUESTION 82
In a negotiation for a new contract, the supplier suggests the buyer to shorten payment period from 45 days to
15 days because they are investing in new facilitiesto expand the supply capacity. The buyer replies that she can only sign off the deal if the payment period is 30 days or more since it often takes at least 30 days for her company to collect the payment from customers. A permission from senior managementis required for this suggestion. In order to ensure that supplier understands the matter, she reiterates it throughout the meeting.
Which tactics is she using?
1. Outrageous initial demand
2. Salami slicing
3. Lack of authority
4. Broken record

1 and 3only

2 and 4 only

3 and 4 only

1 and 2 only

NEW QUESTION 83
Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

ABC provides the information required to take action and realise improvements

Limited understanding of true costs incurred

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

Costs are allocated based on volume

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

NEW QUESTION 84
Which of thefollowing are signs indicating that TOP is using coercive power in commercial negotiation?
Select TWO that apply.

Demonstrating fairness and respect

Withdrawal of benefits

Use of guilt

Technical expertise

Positive references

NEW QUESTION 85
Which of the following is the best description of direct cost?

Direct costs are only variable raw materials that constitute a product

Direct costs include raw materials, labour andoverheads

Direct costs include only raw materials and labour of making the final product

Direct costs include raw materials, labour and other expenses attributable to the final product

NEW QUESTION 86
Leitax is a consumer electronics firm with headquarters in the US and with a global sales presence. The company maintains seven to nine models in its product portfolio, each of which has multiple SKUs. Product life ranges from fifteen to nine months and is getting shorter. The demand planning and master planning processes at the company were ill-defined. Data relevant to forecasting were usually inaccurate, incomplete, or unavailable and the lack of objectives and monitoring mechanisms for the demand planning process meant that process improvement could not be managed. Support for supply management was equally ill-defined, as master production schedules were sporadic and unreliable and suppliers had learned to mistrust them. Leitax’s newly appointedSupply chain director, Jessica realises that the “buy-in” of different functional groups was critical to the improvement of demand planning. She invites relevant stakeholders to a meeting so that they can express their opinions openly. What tactic is Jessica using?

Coalition

Pressure

Consultation

Persuasion