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| Section | Objectives |
|---|---|
| Negotiation planning and preparation | - Preparation techniques
|
| Power, ethics and communication in negotiation | - Influencing factors
|
| Negotiation fundamentals | - Principles of commercial negotiation
|
| Negotiation strategies and tactics | - Approaches to negotiation
|
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NEW QUESTION # 55
Which of the following is a challenge when calculating absorption costing?
Answer: D
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 # 56
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
Answer: A,E
Explanation:
Trust may create value as following:
Text Description automatically generated with low confidence
LO 1, AC 1.4
NEW QUESTION # 57
Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply
Answer: C,D
Explanation:
:
There are many factors that can influence the balance of power in a negotiation. These factors are classified into 3 levels:
Macro level: STEEPLE framework: social, technological, economic, environment, political, legal and ethical Micro level: Porter's five forces:
Diagram Description automatically generated
One-to-one buyer-supplier dynamics.
The question asks about the micro factors that increases supplier's bargaining power. Among 5 answers, only
2 are likely to increase buyer's power:
There are no close substitutes for rubber: the buyer has to buy rubber, not any other material.
Costs of changing suppliers are high: buyer entails a large barrier if they want to switch supplier.
Other answers cannot be correct because:
SRI sets up its own rubber plantation: Buyer secures its own supply
SRI's purchase amount makes significant proportion of supplier revenue: Suppliers are reliant on buyer. If the buyer stops buying from them, they can face serious cash flow problems Rubber from different suppliers is virtually similar: undifferentiated product would shift the power balance towards buyer.
NEW QUESTION # 58
In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost
24%. Which of the following represents themark-up of that company?
Answer: C
Explanation:
Explanation
Mark-up is the amount added to the cost of an item to get to its selling price and is expressed as a percentage.
Mark-up(%) = (Price - Cost) / Cost x 100
= (100 - 9 - 51 - 24) / (9 +51 +24) x 100 = 16 / 84 x 100 = 19.04%
LO 2, AC 2.1
NEW QUESTION # 59
Which of the following two are recognized strategies to achieve a win-lose outcome?
Making the other party lower its resistance point
Making the other party think this settlement is the best it can achieve Employ empathy to gain mutual understanding Using compromise and creativity tactics
Answer: D
Explanation:
In a win-lose outcome, tactics often involve lowering the other party's resistance point (1) and convincing them that the offer is the best possible (2). These strategies are designed to maximize advantage for one party at the expense of the other, fitting with CIPS's win-lose negotiation techniques.
NEW QUESTION # 60
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