QUESTION: 17

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 and overheads
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

Answer(s): D

Explanation:

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.

Reveal Solution Next Question

QUESTION: 18

A procurement professional is preparing for a negotiation 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

Answer(s): A

Explanation:

MIL criteria indicate 3 limits that negotiator should establish:
M - Must achieve: minimum target/maximum you can concede on this point; the mandatory requirement or fall back position
I - Intend to achieve: realistic target you are aiming for on this point L Like to achieve: stretch target to achieve on this point.

PPCA is purchase cost analysis
TIMWOOD indicates 7 types of waste in Lean principles
The RAQSCI model is a mnemonic summary of a business model used to define and structure business requirements

Reveal Solution Next Question

QUESTION: 19

Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

Identify areas in your skill set where you need to improve
Gloss over areas where you need to improve your skills or performance
Be overly modest about your contribution to the outcomes of negotiation
Use generalised or ambiguous language when describing your strengths and development areas
Be honest and objective about your skills

Answer(s): A,E

Explanation:

Giving positive group and individual feedback is easy, as is self-congratulation and, in many cases, it is hoped, this will be an accurate reflection on actual performance.
When it comes to developmental or difficult feedback, it is only natural to want to move on and not reflect on the negative or developmental points, or why a negotiation did not achieve its objectives. But this is a mistake. The best learning opportunities come from reflection on what could be done better, and this can be achieved without blame, threat or condemnation. Everyone and every team will make mistakes and/or have areas where they could have improved. Clearly, if every reflection session concludes that an individual or team keeps making the same mistake, then there is a case to change roles or consider alternative approaches.
About Dos and Don'ts of reflection, you can refer here: https://offices.depaul.edu/human- resources/employee-relations/Documents/Self%20Assesement.pdf

Reveal Solution Next Question

QUESTION: 20

Which of the following is the 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

Answer(s): A

Explanation:

As a financial metric, the margin of safety (safety margin) is equal to the difference between current or forecasted sales and sales at the break-even point. The margin of safety is sometimes reported as a ratio, in which the aforementioned formula is divided by current or forecasted sales to yield a percentage value. The figure is used in both break-even analysis and forecasting to inform a firm's management of the existing cushion in actual sales or budgeted sales before the firm would incur a loss.
This is a question that a student met in her actual exam. The margin of safety is not even mentioned in the CIPS study guide.

Reveal Solution Next Question

Free L4M5 Exam Braindumps (page: 5)

QUESTION: 17

Explanation:

QUESTION: 18

Explanation:

QUESTION: 19

Explanation:

QUESTION: 20

Explanation: