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L4M5 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Question # 54

Which of the following are examples of variable costs?

Options:

A.

1 and 3 (Building and site rent and Raw materials expenditure)

B.

2 and 3 (Annual insurance premium and Raw materials expenditure)

C.

1 and 4 (Building and site rent and Delivery costs for materials)

D.

3 and 4 (Raw materials expenditure and Delivery costs for materials)

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Question # 55

According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

Options:

A.

Inspirational

B.

Persuasion

C.

Collaborative

D.

Seeking commitment

E.

Directive

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Question # 56

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

Options:

A.

Complex idea comprehension

B.

Controlling one's own emotions

C.

Perceiving how others feel

D.

Reasoning and problem solvingAbstract thinking

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Question # 57

A breakeven analysis uses which of the following aspects as part of the analysis?

Options:

A.

Fixed cost

B.

Buying cost minus variable cost per unit

C.

Variable cost

D.

Selling price minus variable cost per unit

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Question # 58

A negotiation meeting between a buyer and supplier has taken several hours. Both parties believe the negotiation is starting to reach a close. Before the supplier makes their closing statements, they are most likely to be doing which of the following?

Options:

A.

Gathering information and data

B.

Watching for verbal and visual buying signals

C.

Establishing connections and building rapport

D.

Raising last-minute objections

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Question # 59

If the price of a good is above the equilibrium price, which of the following will happen?

Options:

A.

The quantity demanded is equal to the quantity supplied and the price remains unchanged

B.

There is a shortage (i.e. an excess demand) and the price will fall

C.

There is a surplus (i.e. an excess supply) and the price will rise

D.

There is a surplus (i.e. an excess supply) and the price will fall

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Question # 60

A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation. What would be an appropriate response from the procurement manager?

Options:

A.

Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating

B.

Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time

C.

Decline the offer as it would take too much time to go and visit the supplier

D.

Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment

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Question # 61

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:

A.

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

B.

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

C.

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

D.

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

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Question # 62

A procurement manager withholds important information to strengthen negotiating power. Is this appropriate when using an integrative negotiation style?

Options:

A.

No, because this will not discover the supplier’s resistance point

B.

No, because this is not being open about the requirement

C.

Yes, because it will discover the supplier’s resistance points

D.

Yes, because it will maximise the outcome for the procurement manager

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Question # 63

All of the following shift the supply of watches to the right except...?

Options:

A.

An advance in the technology used to manufacture watches

B.

A decrease in the wage of workers employed to manufacture watches

C.

An increase in the price of watches

D.

Manufacturers' expectation of higher watch prices in the future

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Exam Code: L4M5
Exam Name: Commercial Negotiation
Last Update: Feb 20, 2026
Questions: 395
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