CIPS L4M6 Exam - Topic 2 Question 78 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 78
Topic #: 2

[All L4M6 Questions]

Effective cost modelling involves which of the following?

Data gathering

Analysis of facts

Supplier negotiation

Issuing a request for quotation

A1 and 2 only

B1 and 3 only

C2 and 3 only

D2 and 4 only

Show Suggested Answer

Suggested Answer: A

Comprehensive and Detailed

Effective cost modelling is a process that helps in understanding the cost structure of a product or service. It involves:

Data gathering:Collecting relevant data related to materials, labor, overheads, and other cost drivers.

Analysis of facts:Evaluating the collected data to understand cost behaviors and identify areas for cost reduction.

Supplier negotiation and issuing a request for quotation are subsequent steps that may utilize the insights gained from cost modelling but are not part of the modelling process itself.

CIPS L4M6 Study Guide

by Leatha at May 17, 2026, 03:32 AM

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Altha

4 days ago

I think data gathering is crucial.

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Meaghan

9 days ago

It's all about data and supplier talks, for sure!

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Charlesetta

14 days ago

I disagree, analysis alone isn't enough without negotiation.

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Matilda

19 days ago

Surprised that issuing a request for quotation isn't included in more options.

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Van

25 days ago

I think supplier negotiation is key too!

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Willard

30 days ago

Definitely involves data gathering and analysis of facts.

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Shelba

1 month ago

Not sure if analysis alone is enough without negotiation.

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Alishia

1 month ago

Surprised that some options don’t include all four!

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Gracia

2 months ago

Issuing a request for quotation is also part of it.

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Merlyn

2 months ago

I think supplier negotiation is key too.

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Jenelle

2 months ago

Definitely involves data gathering and analysis!

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Nu

2 months ago

I’m a bit confused about the role of supplier negotiation in this context. I thought it was more about the analysis and data gathering, like in option A.

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Jesus

2 months ago

I feel like we practiced a question similar to this, and it emphasized the importance of issuing requests for quotations. Maybe that relates to option D?

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Viva

2 months ago

I think option A makes sense because it focuses on data and analysis, which are foundational steps. I just can't recall if negotiation is part of the model.

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Xuan

4 months ago

I remember we discussed that data gathering and analysis of facts are crucial for effective cost modelling, but I'm not sure if supplier negotiation is also included.

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