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CIPS L4M6 Exam - Topic 2 Question 78 Discussion

Effective cost modelling involves which of the following?Data gatheringAnalysis of factsSupplier negotiationIssuing a request for quotation
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 2 and 4 only

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

Show Suggested Answer Hide 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.


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

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Jenelle
8 hours ago
Definitely involves data gathering and analysis!
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Nu
6 days 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
11 days 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
16 days 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.
upvoted 0 times
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Xuan
2 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.
upvoted 0 times
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