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| Section | Objectives |
|---|---|
| Topic 1: Understand the interpersonal skills required for effective negotiation | - Understand the behavioral aspects of negotiation
|
| Topic 2: Understand how to prepare for negotiations in procurement and supply | - Understand how to prepare for a negotiation
|
| Topic 3: Understand the stages of commercial negotiations in procurement and supply | - Analyze the types of approaches that can be pursued in commercial negotiations
|
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NEW QUESTION # 290
Which of the following should be adopted to minimise the conflict between parties in commercial negotiation?
Answer: A
Explanation:
:
Ground rules are the basic rules for doing something (Cambridge Dictionary). A negotiation goes more smoothly if ground rules are adopted. Then if something goes awry at a later time, you can point out the ground rule that has been violated. Procurement professional should seek to minimise conflict over process through agreeing 'ground rules' and approach as far as possible with the other party in advance of any negotiation meetings.
There should be two sets of ground rules: 1) ground rules for the negotiations between the two parties and 2) ground rules for the negotiating team itself. This article is about the negotiating team ground rules.
The rule of law is the condition in which all members of society, including its political leaders, accept the authority of the law.
Ground zero describes the point on the Earth's surface closest to a nuclear detonation. In the case of an explosion above the ground, ground zero refers to the point on the ground directly below the nuclear detonation.
The Ground Beam is the beam which is provided usually at the foundation level to support building walls, joists, etc.
NEW QUESTION # 291
According to Mendelow's Matrix, how should stakeholders with high interest but low power be managed?
Answer: A
Explanation:
Mendelow's Matrix categorises stakeholders by power and interest. High-interest, low-power stakeholders must be kept informed, as they care about outcomes but lack direct influence. Keeping them informed builds trust and reduces resistance. By contrast, high power/interest stakeholders are key players, while low power
/low interest require minimal effort. This tool ensures negotiation strategies align with stakeholder dynamics, preventing overlooked risks or conflicts.
Reference: CIPS L4M5 (2nd ed.), LO 3.1 - Stakeholder mapping using Mendelow's Matrix.
NEW QUESTION # 292
Which of the following is a challenge when calculating absorption costing?
Answer: B
Explanation:
Absorption costing allocates indirect overheads to units, which is inherently judgemental; selecting allocation bases that "fairly" load overhead to products is the well-known difficulty. (By contrast, option B describes activity-based costing concepts-cost pools and drivers.) Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Costing methods (absorption vs ABC) for negotiation preparation.
NEW QUESTION # 293
Which of the following are examples of variable costs?
Building and site rent
Annual insurance premium
Raw materials expenditure
Delivery costs for materials
Answer: B
Explanation:
Variable costsare expenses that change in proportion to business activity or production volume.Raw materialsanddelivery costsdirectly increase as more products are produced. In contrast,rentandinsuranceare fixed costs that remain constant regardless of output levels.
"Variable costs are directly linked to production output. Raw materials and logistics (e.g., delivery) scale with order volume, impacting supplier pricing and buyer negotiations." (L4M5 Commercial Negotiation, 2nd edition, Section 2.1 - Direct and Variable Cost Classifications)
NEW QUESTION # 294
All of the following shift the supply of watchesto the right except...?
Answer: D
Explanation:
Explanation
A supply curve will slope upward from left to right showing more supply at higher prices, as illustrated in the graph below:
A picture containing chart Description automatically generated
A movement along the supply curve will be brought about by a change in price, but a shift of the whole curve will be caused by a determinant other than price:
- The physical feasibility and time and energy required to produce the products
- Technology and innovation
- The objectives of the producers and their future expectations
- Prices of other goodsand services
- Government's policies
LO 2, AC 2.2
NEW QUESTION # 295
......
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