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Updated CIPS L4M5 Exam Questions [2025] - Quick Tips To Pass

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Posted on: 01/15/25

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CIPS L4M5 exam covers a wide range of topics, including negotiation planning, stakeholder analysis, communication skills, and conflict resolution. L4M5 exam is designed to test the candidate's ability to negotiate effectively in different scenarios, such as price negotiations, contract negotiations, and supplier relationship negotiations. L4M5 Exam is structured in a way that ensures candidates can apply theoretical knowledge to practical situations and make informed decisions that benefit their organizations. Passing the CIPS L4M5 exam demonstrates a candidate's ability to negotiate successfully, which is a highly valued skill in the procurement profession.

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CIPS Commercial Negotiation Sample Questions (Q102-Q107):

NEW QUESTION # 102
Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase. Which influencing tactic is the supplier using?

  • A. Inspirational appeal
  • B. Rational persuasion
  • C. Personal appeal
  • D. Coalition

Answer: B

Explanation:
This question is a duplicate of Question 22, and the answer remains Rational persuasion (A). The supplier's use of economic justifications aligns with rational persuasion, an influencing tactic defined by CIPS as presenting logical, fact-based reasons to secure agreement.


NEW QUESTION # 103
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. Paying supplier on time
  • B. Volume consolidation across categories
  • C. Volume separation
  • D. Volume redistribution
  • E. Forming purchasing consortia
  • F. Simplify procurement process

Answer: B,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 # 104
Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

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

Answer: A,C

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 # 105
Which of the following are macroeconomic factors that may have influence to the commercial negotiation?
Select TWO that apply

  • A. Rising import tariffs
  • B. Supply curve
  • C. Bargaining power of supplier
  • D. Equilibrium price
  • E. Unemployment rate

Answer: A,E

Explanation:
Explanation
There are many macro economic factors that could influence procurement in general andcommercial negotiation in particular. Below are six factors that are agreed to be fairly significant:
* Economy growth rate
* Inflation rates
* Interest rates
* Currency exchange rate
* Unemployment rate
* Protectionism
LO 2, AC 2.2


NEW QUESTION # 106
For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation. Which one of the following could help?

  • A. Involve a larger team than the other party
  • B. Involve an appropriate cross-functional team
  • C. Involve a location-based team only
  • D. Involve a team of only senior managers

Answer: B

Explanation:
Involving an appropriate cross-functional team is beneficial for effective commercial negotiation because it brings together diverse perspectives and expertise relevant to the negotiation context. According to CIPS, a cross-functional team ensures that all aspects, such as technical, financial, and operational inputs, are considered, leading to more balanced and informed decision-making. This approach also helps in addressing complex negotiation elements effectively.


NEW QUESTION # 107
......

The CIPS L4M5 certification provides is beneficial to accelerate your career in the tech sector. Today, the L4M5 is a fantastic choice to get high-paying jobs and promotions, and to achieve it, you must crack the challenging CIPS exam. It is critical to prepare with actual L4M5 Exam Questions if you have less time and want to clear the test in a short time. You will fail and waste time and money if you do not prepare with real and updated CIPS L4M5 Questions.

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