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CIPS L4M5 Dumps

Exam Code:
L4M5
Exam Name:
Commercial Negotiation
Last Update: Jun 9, 2025
317 Questions with Explanation
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Commercial Negotiation Practice Questions

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Commercial Negotiation Questions and Answers

Questions 1

In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions. Dynamics pricing is based on which costing method?

Options:

A.

Activity-based costing

B.

Cost plus costing

C.

Absorption costing

D.

Marginal costing

Questions 2

When might a buyer decide to use a distributive approach to a negotiation with a supplier?

Options:

A.

When they are dependent on that supplier in the future

B.

When there are various suppliers in the market producing a similar product

C.

When procuring an item that is not strategic to the organisation

D.

When a working relationship is important in the future

Questions 3

Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?

Options:

A.

Price adjustment mechanism

B.

Cost reimbursable pricing arrangement

C.

Standard schedule of rates

D.

Fixed pricing arrangement

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