CIPS L4M5 (Commercial Negotiations) LO2 QUESTIONS AND ANSWERS

CIPS L4M5 (Commercial Negotiations) LO2
QUESTIONS AND ANSWERS.
what is the mark-up?
Correct Answer -the amount added to the cost of an item to get to its
selling price and is expressed as a percentage
what is the margin?
Correct Answer -the amount added to the cost of an item expressed as a
percentage of the selling price.
how would you work out the mark-up?
Correct Answer -(price - cost)/cost x 100
how would you work out the margin?
Correct Answer -(price - cost)/price x 100
what is procure to pay?
Correct Answer -the system that connects the steps of the procurement
process - from obtaining the raw materials through to making the payment
what are saving levers and tactics?
Correct Answer -- volume concentration
- demand management
- best price evaluation
- global sourcing
- specification improvement
- joint process improvement