CIPS L4M5 Commercial Negotiation Online Training
CIPS L4M5 Online Training
The questions for L4M5 were last updated at Feb 05,2025.
- Exam Code: L4M5
- Exam Name: Commercial Negotiation
- Certification Provider: CIPS
- Latest update: Feb 05,2025
Question #41
Which of the following are most likely to beindirect costs of a garment manufacturer? Select THREE that apply.
- A . Packaging material
- B . Textile
- C . Zips pads
- D . Maintenance materials
- E . Utilities
- F . Depreciation of machinery
Correct Answer: D,E,F
D,E,F
Explanation:
Indirect costs are those cost that are not directly attributable to production.
Examples of indirect costs including the following:
Indirect labour: This covers every person in the factory who does not directly perform a production operation such as managers, supervisors, engineers, store personnel, clerks, maintenance staff, porters, canteen staff, security and cleaners etc.
Expenses: Included in this element is every fixed and variable expenses incurred in operating the factory, such as rent, rates, utilities, insurance, depreciation, maintenance, air conditioning and the various types of energy generation required by a clothing factory. Indirect materials: Also known as consumables, this element contains all the materials not directly connected to the makeup of a garment. Some of the typical items involved are office materials, spare parts, marker paper, maintenance materials, chalk & pins.
Direct costs are those costs of a product/service directly attributable/traceable to its production. Examples of direct costs including the following:
Direct Materials: Direct materials are all the materials and trimmings which go into the construction and finish of the garment. Typically, these materials would include cloth, lining, fusible, zips pads, tapes, labels, tickets, hangers and packaging materials.
Direct Labour: This cover the cost of all the labor directly involved in producing the garment and could include cutting, fusing, regular sewing, special machine operations, pressing, finishing, inspection and packing. Labor of all types and grade has a directoverhead which include holiday pay, sick pay, fringe benefits etc and the statutory payments made by the employer for each employee. This is usually expressed as a percentage of salary and when this percentage is added to the employee’s wage, it becomes the basis for calculating direct labor costs.
D,E,F
Explanation:
Indirect costs are those cost that are not directly attributable to production.
Examples of indirect costs including the following:
Indirect labour: This covers every person in the factory who does not directly perform a production operation such as managers, supervisors, engineers, store personnel, clerks, maintenance staff, porters, canteen staff, security and cleaners etc.
Expenses: Included in this element is every fixed and variable expenses incurred in operating the factory, such as rent, rates, utilities, insurance, depreciation, maintenance, air conditioning and the various types of energy generation required by a clothing factory. Indirect materials: Also known as consumables, this element contains all the materials not directly connected to the makeup of a garment. Some of the typical items involved are office materials, spare parts, marker paper, maintenance materials, chalk & pins.
Direct costs are those costs of a product/service directly attributable/traceable to its production. Examples of direct costs including the following:
Direct Materials: Direct materials are all the materials and trimmings which go into the construction and finish of the garment. Typically, these materials would include cloth, lining, fusible, zips pads, tapes, labels, tickets, hangers and packaging materials.
Direct Labour: This cover the cost of all the labor directly involved in producing the garment and could include cutting, fusing, regular sewing, special machine operations, pressing, finishing, inspection and packing. Labor of all types and grade has a directoverhead which include holiday pay, sick pay, fringe benefits etc and the statutory payments made by the employer for each employee. This is usually expressed as a percentage of salary and when this percentage is added to the employee’s wage, it becomes the basis for calculating direct labor costs.
Question #42
Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.
- A . Avoidance of submitting important documentations
- B . Reduced response time during contract performance
- C . Resolving some conditions that would otherwise have them competing for resources
- D . Subjective assessment of performance
- E . Exploring a disagreement to learn from each other’s insights
Correct Answer: A,D
A,D
Explanation:
Trust-destroying behaviours:
– Rumours of partnership or relationship breaking down
– Emotion-based assessment of performance
– Avoiding accountability, passing the blame to others
– General mood C resentment, distrust,frustration, etc LO 1, AC 1.4
A,D
Explanation:
Trust-destroying behaviours:
– Rumours of partnership or relationship breaking down
– Emotion-based assessment of performance
– Avoiding accountability, passing the blame to others
– General mood C resentment, distrust,frustration, etc LO 1, AC 1.4
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #43
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
- A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
- B . When buyer needs to gather more information to gain more advantages in later negotiations
- C . When preserving harmony and avoiding disruption with supplier are especially important
- D . When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
Correct Answer: C
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
C
Explanation:
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party’s point of view.
Accommodating is best used when:
Question #50
Which of the following is categorised as fixed cost?
- A . Additional pallet hires due to higher demand in year-end season
- B . Land rental paid in advance
- C . Governments taxes
- D . Raw materials for next year production
Correct Answer: B
B
Explanation:
Anorganisation’s expense can be categorised into three groups:
Fixed Costs C costs that do not change with output.
Variable Costs C costs that vary in direct proportion to output.
Semi-variable costs C costs that are a combination of the above, with both a fixed and
variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won’t increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.
Reference:
CIPS study guide page 79-84
Study tips: Fixed variable and semi-variable costs – AAT Comment
B
Explanation:
Anorganisation’s expense can be categorised into three groups:
Fixed Costs C costs that do not change with output.
Variable Costs C costs that vary in direct proportion to output.
Semi-variable costs C costs that are a combination of the above, with both a fixed and
variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won’t increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.
Reference:
CIPS study guide page 79-84
Study tips: Fixed variable and semi-variable costs – AAT Comment
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