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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Xuan

16 days 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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