Free CIPS L4M5 Exam Dumps Questions & Answers

Which of the following is categorised as fixed cost?

• A.  Additional pallet hires due to higher demand in year-end season
• B.  Land rental paid in advance
• C.  Governments taxes
• D.  Raw materials for next year production

Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?

• A.  No, only procurement, the user, and suppliers have an interest in the products negotiated
• B.  Yes, and the budget holder is the most important one because of the finances involved
• C.  Yes, the role of procurement is to ensure that the technical specifications are fit for purpose
• D.  No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes

Which of the following are factors that might shift the demand curve for a consumer good to the right?
1. Prices of complementary goods decrease
2. Price of the consumer good decreases
3. Customers' expectation of higher prices in the future
4. Consumer tastes shift toward substitute products

• A.  3 and 4 only
• B.  1 and 2 only
• C.  1 and 3 only
• D.  4 and 2 only

How can having a best alternative to a negotiated agreement (BATNA) support the buyer in a negotiation?
Select THREE options that apply.

• A.  It reduces the likelihood of accepting a poor agreement
• B.  It helps to identify the point at which the buyer should walk away
• C.  It guarantees a win-win outcome
• D.  It produces an unacceptable outcome
• E.  It extends the length of the negotiation period
• F.  It helps to be more assertive in a negotiation

Which of the following is a disadvantage of absorption costing method?

• A.  Variable costs are not taken into product final costs
• B.  Limited understanding of true costs incurred
• C.  Using marginal cost of producing addition units
• D.  Fixed cost allocated to products on the basis of the cost of activities used in producing them