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CIPS Commercial Negotiation Sample Questions (Q73-Q78):

NEW QUESTION # 73
Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.

• A. Reasoning and problem solving
  Abstract thinking
• B. Perceiving how others feel
• C. Complex idea comprehension
• D. Controlling one's own emotions

Answer: B,D Explanation:
Explanation
Emotional Quotient is the set of skills that enables us to make our way in a complex world - the personal, social and survival aspects of overall intelligence, the elusive common sense and sensitivity that areessential to effective daily functioning. It has to do with the ability to read the political and social environment, and landscape them; to intuitively grasp what others want and need; what strengths and weaknesses are; to remain unruffled by stress; andto be engaging. The kind of person others want to be around and follow.
EQ seeks to measure emotional intelligence and is centred on abilities such as the following:
- Identifying emotions
- Evaluating how others feel
- Controlling one's own emotions
- Perceiving how others feel
- Using emotions to facilitate social communication
- Relating to others
On the other hand, cognitive ability is defined as a general mental capability involving reasoning, problem solving, planning, abstract thinking, complex ideacomprehension, and learning from experience (Gottfredson,
1997).
LO 3, AC 3.3
NEW QUESTION # 74
What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

• A. Win lose
• B. Win win
• C. Lose lose
• D. Deadlocked

Answer: A Explanation:
An adversarial relationship in purchasing and supply arises when identical or equivalent good or services are available from competing suppliers and buyers/sellers are trying to gain an advantage over each other. Low levels of trust are characteristic of adversarial relationships. The outcome when two organisations with adversarial negotiate is most likely to be win-lose.
NEW QUESTION # 75
Which of thefollowing is the purpose of using stakeholder support level scale?

• A. To estimate the gap and the progress towards desired levels of support
• B. To identify key stakeholders
• C. To identify stakeholder's needs and expectations
• D. To identify stakeholder level of influence and interest and plot them on stakeholder map

Answer: A Explanation:
Explanation
In order to estimate the gap and the progress towards desired level of support, a stakeholder support scale can be used by the procurement internally. The support level scale measures stakeholder commitment. Current support level for the procurement/negotiation objectives should be gained from engagement with key stakeholders. The following is an example of stakeholder support level scale:
Graphical user interface, application Description automatically generated

LO 1, AC 1.1
NEW QUESTION # 76
Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply.

• A. Forming purchasing consortia
• B. Volume separation
• C. Simplify procurement process
• D. Volume consolidation across categories
• E. Volume redistribution
• F. Paying supplier on time

Answer: A,D,E Explanation:
Buying organisation may increaseits leverage with suppliers by concentrating spend. Supplier spend consolidation can take many forms as outlined below:
Vendor base reduction: straightforward reduction of number of suppliers in any category Volume pooling: pooling cross organisational requirement until your order volume is high enough to attract new bidders/additional discounts Volume redistribution: making recommendations following spend analysis to move from one supplier to another Volume consolidation across categories: certainpurchase requirements may be common across a number of categories Standardisation and harmonisation of specifications: analysis of specifications and standards for a high spend purchased input, may show that there is a little difference between them and that the specification can be standardised or at least harmonised across the group or across national, regional or global operations.
Forming purchasing consortia: buyers may decide to come together and combine their purchase volumes to attract better deals.
NEW QUESTION # 77
Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

• A. Variable and all related overhead expenses are specifically assigned to a business activity
• B. Costs are allocated based on volume
• C. Limited understanding of true costs incurred
• D. ABC has tended to over cost products on long runs and under cost those on short runs
• E. ABC provides the information required to take action and realise improvements

Answer: A,E Explanation:
Activity-based costing is an alternative approach to traditional absorption costing. The characteristics of these two methods are illustrated in the graph below:
Graphical user interface, text, chat or text message, website Description automatically generated

NEW QUESTION # 78
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