L4M5 VALID TEST PASS4SURE | L4M5 EXAM BOOTCAMP

L4M5 Valid Test Pass4sure | L4M5 Exam Bootcamp

L4M5 Valid Test Pass4sure | L4M5 Exam Bootcamp

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CIPS L4M5 Certification Exam focuses specifically on enhancing the commercial negotiation skills of procurement professionals. L4M5 exam is designed to test candidates' negotiation skills through a series of scenarios and case studies. Commercial Negotiation certification equips procurement professionals with the necessary knowledge and skills to negotiate effectively with their suppliers, stakeholders, and customers.

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CIPS L4M5 Exam is ideal for procurement professionals who are involved in negotiating contracts, agreements, and other commercial arrangements with suppliers and vendors. It is also relevant for professionals who want to develop their negotiation skills to enhance their effectiveness in other areas of procurement, such as supplier management and stakeholder engagement.

CIPS Commercial Negotiation Sample Questions (Q150-Q155):

NEW QUESTION # 150
Which of the following is a disadvantage of absorption costing method?

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

Answer: D

Explanation:
Absorption costing is an approach to allocating overheads in which indirect costs are loaded or absorbed into direct costs related to specific jobs, processes or outputs, using an estimated basis of allocation.
Graphical user interface, text, chat or text message, website Description automatically generated


NEW QUESTION # 151
Which characteristics are likely to feature in a partnership relationship in purchasing?
* Close collaboration between supplier and buyer
* Focus is on price and delivery only
* Sharing of information
* One-off commercial transactions

  • A. 2 and 5 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 2 and 4 only

Answer: C

Explanation:
Partnership relationshipsare strategic and long-term. They emphasizetrust, collaboration, and information sharing. Unlike transactional relationships, they go beyond price and delivery to focus on joint value creation.
"Collaborative partnerships involve open information sharing and mutual support. These relationships are built on joint objectives, trust, and commitment to long-term success." (L4M5 Commercial Negotiation, 2nd edition, Section 1.2 - Types of Supplier Relationships)


NEW QUESTION # 152
A negotiation process ends once the negotiating meeting has finished. Is this statement true?

  • A. No, the negotiation of terms should always continue after the meeting and until signed by the supplier only
  • B. Yes, provided that the meeting results in a win-win for both parties
  • C. No, best practice would include a period of reflection after the meeting as part of the process
  • D. Yes, because both parties have all of the emotional intelligence they need to proceed

Answer: C


NEW QUESTION # 153
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

  • A. More focus on core business
  • B. Increasing response time to request
  • C. Frequent conflict escalation
  • D. Higher revenues
  • E. Positive feedbacks from customers

Answer: A,E

Explanation:
Trust may create value as following:
LO 1, AC 1.4


NEW QUESTION # 154
When prices of input materials increase, supply curve shifts to the left while demand remains stable. The shift of supply will tend to cause which of the following?

  • A. An increase in the equilibrium price and a decrease in the equilibrium quantity
  • B. An increase in the equilibrium price and quantity
  • C. A decrease in the equilibrium price and quantity
  • D. A decrease in the equilibrium price and an increase in the equilibrium quantity

Answer: A

Explanation:
:
The case in the question is illustrated as below:
Diagram Description automatically generated

The equilibrium price initially at P0 with quantity Q0, when supply curve shifts to the left, it will converge with demand curve at new equilibrium point with price P1 and quantity Q1. As you can see from the graph, P1 is greater than P0 and Q1 is smaller than Q0.


NEW QUESTION # 155
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