BUS 230 WK 8 Quiz Chapter 10 - All Possible Questions
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BUS 230 WK 8 Quiz Chapter 10 - All Possible Questions
1. Identical prices received from various sources should:
1. be expected when the specification is highly customized.
2. always make the buyer suspicious of collusion.
3. only draw attention if the buyer is dissatisfied with the price quoted.
4. draw attention if the specification is complex or detailed.
5. result in the buyer taking legal action against all bidders.
2. Most direct costs are:
1. variable costs.
2. overhead costs.
3. general and administrative costs.
4. semivariable costs.
5. fixed costs.
3. If the buyer wants to motivate the seller to manage total costs, the best type of contract is:
a. firm-fixed-price (FFP).
b. cost-plus-incentive-fee (CPIF)
c. firm-fixed-price plus incentive fee (FFPIF).
d. cost-plus-fixed-fee (CPFF).
e. cost-no-fee (CNF).
4. The market approach to pricing:
1. means prices are set to cover direct costs, contribute to indirect, and attain a profit.
2. is the only defensible pricing mechanism for ethical companies to use.
3. implies that prices are set based on what the market will bear.
4. means that prices are adjusted regularly to ensure that the selling organization recoups all its market costs.
5. implies that market analysis is the only technique that should be employed to negotiate prices.
5. The prime function of an organized commodity exchange is to furnish an established marketplace where:
a. the forces of supply and demand operate freely.
b. commodity prices can be controlled.
c. sellers of the same commodity can come together to set prices.
d. products that are difficult to grade can be traded.
e. there are only a limited number of buyers and sellers.
6. Forward buying:
1. offsets transactions to protect against price and exchange...