Price Determination in Purchasing and Supply Chain Management MCQs
Price Determination in Purchasing and Supply Chain Management MCQs
The following Price Determination in Purchasing and Supply Chain Management MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Price Determination in Purchasing and Supply Chain Management. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: Breakeven is the point in time when total outcome from all jobs sold, built, and collected equals the partial expenses.
A. True
B. False
2: ____ is a deduction allowed by some sellers of goods or by some providers of services to motivate customers to pay within a specified time.
A. additional charge
B. additional expense
C. abatement
D. cash discount
3: Competitive bidding trap is complete bidding documents with missing provisions and information may result in decreased costs for the buying organization.
A. True
B. False
4: _____ is the expenses relating to the actual units of production.
A. Direct costs
B. Indirect costs
C. Both a and b
D. None of these
5: Gross margin is the difference between the price of the job and the costs to build a job.
A. True
B. False
6: _____ is the cost of operations that cannot be assigned to specific projects, such as electricity and central administrative services; sometimes referred to as overhead.
A. Direct costs
B. Indirect costs
C. Both a and b
D. None of these
7: Learning curve is the method used to _____ the efficiencies of increasing outputs.
A. Measure
B. Predict
C. Both a and b
D. None of these
8: Market price is the current price at which a good or service can be bought or sold.
A. True
B. False.
9: A markup percentage that can be added to the total of all indirect costs to determine a remaining price or contract sum.
A. True
B. False
10: Involves only one player in which each player is assumed to know the strategies such that the player reaches a point of minimum benefit.
A. True
B. False
11: Net margin means that ?
A. Profits
B. Loss
C. Both a and b
D. None of these
12: ________is the practice of taxing imports as a means of shielding a country’s domestic industries from foreign competition.
A. Protectionism
B. Advantage
C. Advance
D. Assistance
13: Purchase risk perception is the potential for failures of a purchasing process designed to purchase goods and services.
A. True
B. False
14: _______is the extent to which the service provider is inclined to deliberately underperform or withhold resources should the customer be unable to detect such action.
A. Shirking
B. Accepting
C. Comprehensive contribution
D. All of these
15: Price/cost analysis is a powerful approach to pricing that does not allow the buying organization to determine what prices should be based on industry norms for direct cost, indirect cost, and a reasonable profit margin.
A. True
B. False
16: Target pricing the minimum price the seller is able to pay is compromising the integrity of the product or the profitability of the supplier.
A. True
B. False
17: The reduction in price a manufacturer or wholesaler gives a wholesaler or retailer when it buys a product or group of products is known as?
A. Trade discount
B. Abatement
C. Concession
D. Additional charges
Price Determination in Purchasing and Supply Chain Management MCQs
