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Free L4M5 Exam Braindumps (page: 3)

Page 3 of 70
PDF with 223 Questions

Which of the following are variable costs?

  1. Rent
  2. Loan repayments
  3. Insurance
  4. Packaging

Answer(s): D

Explanation:

Packaging is considered a variable cost because it fluctuates with the level of production or sales activity. Variable costs change directly in relation to the volume of output or service. In contrast:

Rent (A), Loan repayments (B), and Insurance (C) are fixed costs, as they generally do not vary with production levels within a certain range. These are recurring costs that remain constant over time, aligning with CIPS's cost classification in procurement.



For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.
Which one of the following could help?

  1. Involve a larger team than the other party
  2. Involve an appropriate cross-functional team
  3. Involve a team of only senior managers
  4. Involve a location-based team only

Answer(s): B

Explanation:

Involving an appropriate cross-functional team is beneficial for effective commercial negotiation because it brings together diverse perspectives and expertise relevant to the negotiation context.

According to CIPS, a cross-functional team ensures that all aspects, such as technical, financial, and operational inputs, are considered, leading to more balanced and informed decision-making. This approach also helps in addressing complex negotiation elements effectively.



What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

  1. Persistent late payment of the supplier's invoices
  2. Unequal sharing of gains, risks, and costs with the supplier
  3. Requesting early supplier involvement
  4. Planning scheduled visits to the supplier site
  5. Scheduling agreed supplier delivery dates

Answer(s): A,B

Explanation:

Persistent late payment of the supplier's invoices (A) and Unequal sharing of gains, risks, and costs with the supplier (B) are potential sources of conflict as they create dissatisfaction and imbalance in the relationship. According to CIPS materials:

Late payments (A) can strain the supplier's cash flow, affecting their operational stability and leading to mistrust in the buyer.

Unequal sharing of gains, risks, and costs (B) can result in one party feeling exploited or unfairly treated, which undermines the collaborative spirit essential for long-term partnerships.

In contrast, requesting early supplier involvement, planning visits, or setting delivery dates are typically part of constructive relationship management practices and do not inherently lead to conflict.



When developing a negotiation approach, according to recognised theory (for example, Mendelow), how should stakeholders with high interest but low power be managed?

  1. Minimal effort
  2. Key player
  3. Keep informed
  4. Keep satisfied

Answer(s): C

Explanation:

According to Mendelow's Stakeholder Matrix, stakeholders with high interest but low power should be managed by keeping them informed. These stakeholders are invested in the outcome but lack the influence to change it, so keeping them updated helps in maintaining their support and managing expectations without intensive resources or prioritization. This approach aligns with CIPS guidance on stakeholder management in negotiation planning.






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