Procurement team is required to improve leverage with their suppliers through spend consolidation. To check whether there is any opportunity to consolidate spend, which of the following should be priority of procurement team?

• A.Spend analysis
• B.Value engineering
• C.Price analysis
• D.Total cost analysis

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Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract. Is this statement true?

• A.Yes, because all parties must have exactly the same goals in integrative negotiation
• B.No, because any party may leverage its own advantage during the contract
• C.Yes, because both parties have well understood each other's goals when they engage in collaborative negotiation
• D.No, because the parties will always find a compromise solution in integrative approach

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At which stage in a negotiation would questions be asked to obtain missing information?

• A.The bargaining stage
• B.The proposing stage
• C.The opening stage
• D.The testing stage

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

Correct Answer: A,E

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

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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?

• A.Yielding the supplier's point of view
• B.Postponing the issue
• C.Seeking a quick middle-ground position
• D.Confronting and trying to find a creative solution immediately

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