QUESTION NO: 1
Which of the following is categorised as fixed cost?
Which of the following is categorised as fixed cost?
Correct Answer: B
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QUESTION NO: 2
Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers?
1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power
2. Setting up stronger BATNA
3. Engaging in the negotiation with a distributive approach
4. Eliminating requirements in the specification that prioritises monopoly suppliers
Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers?
1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power
2. Setting up stronger BATNA
3. Engaging in the negotiation with a distributive approach
4. Eliminating requirements in the specification that prioritises monopoly suppliers
Correct Answer: B
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QUESTION NO: 3
During a negotiation, Jose Gomez (salesperson for a strategic supplier) says his sales director will not approve discounts on initial purchases. However, he offers a 5% discount on the aftercare package, which gives the same monetary saving. Sally Pampas needs both the product and the aftercare package and aims for a 5% discount off the purchase price. To achieve a win-win (integrative) outcome, Sally should:
During a negotiation, Jose Gomez (salesperson for a strategic supplier) says his sales director will not approve discounts on initial purchases. However, he offers a 5% discount on the aftercare package, which gives the same monetary saving. Sally Pampas needs both the product and the aftercare package and aims for a 5% discount off the purchase price. To achieve a win-win (integrative) outcome, Sally should:
Correct Answer: B
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QUESTION NO: 4
Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?
Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?
Correct Answer: D
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QUESTION NO: 5
Using emotion as a technique of persuasion is ethical. Is this a true statement?
Using emotion as a technique of persuasion is ethical. Is this a true statement?
Correct Answer: A
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QUESTION NO: 6
A supplier can produce a product for $160 and sells it for $240, making $80 profit. What is the mark-up profit percentage?
A supplier can produce a product for $160 and sells it for $240, making $80 profit. What is the mark-up profit percentage?
Correct Answer: D
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QUESTION NO: 7
A senior buyer analyses the supply market and he realises that his organisation is treated as Exploit according to supplier's perspective model. What does he need to do?
A senior buyer analyses the supply market and he realises that his organisation is treated as Exploit according to supplier's perspective model. What does he need to do?
Correct Answer: A
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QUESTION NO: 8
After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers. Which of the following will be the objective of XYZ procurement team in this negotiation?
After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers. Which of the following will be the objective of XYZ procurement team in this negotiation?
Correct Answer: D
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QUESTION NO: 9
A buyer continually states during negotiation that budget constraints limit their concessions. What tactic is being used?
A buyer continually states during negotiation that budget constraints limit their concessions. What tactic is being used?
Correct Answer: C
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QUESTION NO: 10
A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction.
What is the mark-up profit percentage earned by the supplier on this transaction?
A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction.
What is the mark-up profit percentage earned by the supplier on this transaction?
Correct Answer: C
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QUESTION NO: 11
A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process. Would this be the best course of action?
A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process. Would this be the best course of action?
Correct Answer: B
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QUESTION NO: 12
John and a supplier agree on a long-term relationship based on trust, respect, and shared risk/reward. What type of relationship is this?
John and a supplier agree on a long-term relationship based on trust, respect, and shared risk/reward. What type of relationship is this?
Correct Answer: C
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QUESTION NO: 13
A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?
A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?
Correct Answer: A
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QUESTION NO: 14
Which of the following are examples of connected stakeholders in a private organisation? Select TWO that apply.
Which of the following are examples of connected stakeholders in a private organisation? Select TWO that apply.
Correct Answer: B,D
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QUESTION NO: 15
Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA's regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?
Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA's regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?
Correct Answer: A
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