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Effective listening is important in integrative negotiations. Is this statement correct?
Effective listening is important in integrative negotiations. Is this statement correct?A . Yes, as it allows issues to be shared and understood between all partiesB . Yes, as it means the supplier’s attempts at negotiation can be stopped quickly with reasoningC . No, as what the other party has to...
Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?
Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?A . No, purchasing can negotiate other details of the purchase requisition even where value analysis is absentB . No, value analysis is a very...
Which TWO of the following would be appropriate in this scenario?
A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution. Which TWO of the following would be appropriate in this scenario?A . CollaborationB . Problem solvingC ....
At which negotiation stage should CT introduce these tradeables?
Champion Toys (CT) is negotiating a large order of luxury toys with its supplier, Top Teds. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation. At which negotiation stage should CT introduce these tradeables?A . BargainingB . ClosureC ....
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?
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?A . Activity-based costingB . Cost plus costingC . Absorption costingD . Marginal costingView AnswerAnswer: D Explanation: Dynamic pricing is...
Which of the following is the best description of direct cost?
Which of the following is the best description of direct cost?A . Direct costs are only variable raw materials that constitute a productB . Direct costs include raw materials, labour and overheadsC . Direct costs include only raw materials and labour of making the final productD . Direct costs include...
Which of the following is a description of mark-up?
Which of the following is a description of mark-up?A . Profit expressed as a percentage of the selling priceB . Profit expressed as a percentage of costsC . Profit expressed as a percentage of fixed costsD . Profit expressed as a percentage of variable costsView AnswerAnswer: B Explanation: Mark-up is...
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?A . Yes, characteristics include risk management and strategic planningB . No, this can be classified as adversarialC . Yes, characteristics include arm's...
At a negotiation, which one of the following sources would help to support leverage for the buyer?
Different types of relationships impact commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?A . Legitimate powerB . Personality powerC . Powerful colleaguesD . Friends powerView AnswerAnswer: A Explanation: Legitimate power derives from formal authority or position, giving the buyer...
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?A . Yes, as all procurement processes should go through competitive bidding to...
