CIPS L4M5 Exam - Topic 4 Question 16 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 16
Topic #: 4

Cost and price analysis is very important for buyers when they are preparing for a negotiation with supplier. Which of the following is a benefit of knowing supplier's fixed costs?

AThe buyer would be able to know the right volume to reach break-even point

BThe buyer would be able to know the point at which the supplier would reject the offer

CWith the sole understanding of supplier's fixed cost, the buyer would be able to know the volume at which supplier maximises their profit in short-run

DThe buyer would be able to get a comprehensive picture of supplier's efficiency

Show Suggested Answer

Suggested Answer: A

Knowing supplier's fixed and variable costs is beneficial for the buyer in a negotiation. With these insights, the buyer would know the volume at which the supplier reaches break-even points and then offers significant discount due to economies of scale.

LO 2, AC 2.1

by Art at May 07, 2022, 06:33 PM

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Laurel

7 months ago

A is misleading; break-even isn't just about fixed costs.

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Winfred

7 months ago

Definitely agree with D, efficiency is key!

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Tonette

7 months ago

Wait, can you really know all that just from fixed costs?

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Kiley

7 months ago

I think option B makes the most sense.

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Rashad

8 months ago

Knowing fixed costs helps in negotiations for sure!

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Delisa

8 months ago

This looks like a tricky ZFS question. I'll need to carefully read through the options and think about how each one would impact disk space usage.

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Carlene

8 months ago

I think the answer might be OMP since it deals with overlay management, but I'm a bit unsure about the specifics on transport redundancy.

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Daryl

8 months ago

The Issued Phase sounds like it could be the right answer, since that's when the certificate is actually issued by the CA. But I'm not 100% certain on that.

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Felicia

8 months ago

Ah, this is a tricky one. I'm leaning towards C, azcopy, since that's the Azure-specific tool for transferring data. But I'll double-check the other options just to be sure.

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