Expert Answers to CIPS Exam L4M5 Questions

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CIPS Level 4 Diploma in Procurement and Supply Commercial Negotiation

Commercial Negotiation

Last Update Nov 2, 2025
Total Questions : 373

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Questions 2

Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

Options:

ABC provides the information required to take action and realise improvements

Limited understanding of true costs incurred

ABC has tended to over cost products on long runs and under cost those on short runs

Costs are allocated based on volume

Variable and all related overhead expenses are specifically assigned to a business activity

Discussion 0

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Questions 3

Where a market consists of a large producer with high power, it is known as …

Options:

A monopsony structure

A monopoly structure

A monopolistic structure

An oligopoly structure

Discussion 0

Questions 4

An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?

Options:

When the supplier is a monopolist and some advantages need to be gained from the agreement

In a market that is full of alternative sources and substitute products

Where there is a single sourcing strategy to eliminate the competing suppliers and retain only one

In a market where the buyers are competing for fewer supply sources

Discussion 0

Questions 5

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

Options:

Leading

Hypothetical

Reflective

Multiple

Discussion 0

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cips.certkiller.cips level 4 diploma in procurement and supply l4m5 syllabus exam questions answers.by cordelia.q130.vce.pdf

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2025-10-05