(1). Which of the following is not a transactional relationship characteristic?
(a). Long-term contract,
(b). An absence of concern,
(c). One of a series of independent deals,
(d). Costs, data and forecasts are not shared.
(2). Which of the following is not one of the issues that affect a supplier's assessment of a buying firm?
(a). Gifts & gratuities,
(b). Openness and Approachability,
(c). Availability,
(d). Professionalism.
(3). Which of the following is a major element included in a "to buy" cost analysis?
(a). Delivered purchased material costs,
(b). Transportation costs,
(c). Direct labor costs,
(d). Any follow-on costs stemming from quality and related problems.
(4). Which of the following is not one of the six categories of cost presented in the textbook?
(a). Price of goods,
(b). Variable manufacturing costs,
(c). Fixed manufacturing costs,
(d). Semi Variable costs.
(5). Which of the following is not a common source of prices for a price analysis?
(a). Catalog prices,
(b). Internet prices,
(c). The grapevine,
(d). Independent cost estimates.
(6). Which of the following is not a category of discounts?
(a). Trade discounts,
(b). Quantity discounts,
(c). Credit card discounts,
(d). Seasonal discounts.
(7). Which of the following is not considered a major element that affects a supplier's cost?
(a). Effectiveness of competitors,
(b). Capabilities of management,
(c). Efficiency of labor.
(d). Amount and quality of subcontracting.
(8). Which of the following is not a common use of learning curve?
(a). Estimation of Target costs,
(b). Improving Make-or-Buy Analyses,
(c). Estimation Delivery Times,
(d). Estimation of Material costs.
(9). Several potential benefits exist when a buying firm pays for and takes title to special tooling? Which is not one of the potential benefits?
(a). The buying firm gains greater control,
(b). Insurance costs are lower,
(c). Analysis of production costs is easier,
(d). Labor learning curve effect is reduced.
(10). Generally, compensation arrangements do not determine:
(a). Degree & timing of the cost responsibility assumed by the suppliers,
(b). Amount of profit or fee available to the supplier,
(c). Capability of the supplier with respect to quality,
(d). Motivational implications of the fee portion of the compensation arrangements.
(11). Which of the following statements is not true about incentive arrangements in contracts?
(a). Used to motivate the supplier to control costs,
(b). Used to encourage goods supplier performance,
(c). Contract price will usually be lower,
(d). Ceiling price is usually fixed during negotiations.
(12). Which of the following is not a cost type arrangement?
(a). Cost reimbursement,
(b). Cost plus hidden charges,
(c). Cost plus fixed fee,
(d). Cost plus award fee.
(13). Which of the following is usually not one of the objectives of a negotiation with a supplier?
(a). Quality,
(b). Fair & reasonable price,
(c). Cultural values,
(d). On-time performance.
(14). Which of the following is not one of the major steps in the typical negotiation process?
(a). Preparation,
(b). Establishment of objectives,
(c). Litigation prevention,
(d). Face to face discussions.
(15). Which of the following is a traditional non-cost objective in a negotiation?
(a). Liability for claims and damages,
(b). Quantity of labor,
(c). Wage rates,
(d). Quantity of materials.
(16). Which of the following is not a powerful preparation activity or tool for negotiation presented in
the textbook?
(a). Agenda.
(b). Murder Boards,
(c). Mock Negotiations,
(d). Historical Price Data Sheets.
(17). Several changes in business have increased the need for better contract management. Which of
the following is not of those changes?
(a). Collaboration is continuing to become more important,
(b). Large inventories are available,
(c). Quality is expected and becomes increasingly important due to JIT Supply Management,
(d). Deliveries are expected to be on time and become increasingly important due to JIT Supply Management.
(18). What usually does not need to be specified at the pre-award conference?
(a). All items and conditions,
(b). Expected quality levels,
(c). Staffing and supervision,
(d). Site conditions, work rules, safety.
(19). Which of the following is not one of the four categories of actions that exist to resolve a dispute?
(a). Negotiation,
(b). Mediation,
(c). Situation,
(d). Arbitration.
(20). Which of the following is not true about pricing in institutions?
(a). Until recently, many suppliers granted special prices to institutions,
(b). Today, most suppliers view the institutional market as a less preferable market to private industry,
(c). To obtain fair prices in such a market, institutions much have supply managers that can negotiate effectively with their highly competent sales counterparts,
(d). Institutions, as a group, continue to violate one of the basic principles of good supply management-that of not disclosing prices.
(21). Which condition clearly indicates that negotiation is preferred over competitive bidding?
(a). Dollar volume of the potential buy is very large,
(b). Product isn't actually needed until five months into the future,
(c). Each firm that is competing is a technical giant in the field,
(d). There will be substantial pre-production engineering and tooling required.
(22). All of the following factors will strengthen the buying organization's position in a negotiation except:
(a). Unclear specifications,
(b). Strongly competitive field,
(c). Lack of urgency for a contract,
(d). Thorough cost/price analysis.
(23). Which of the following is the least likely source of relevant information about a supplier when planning a negotiation?
(a). External databases,
(b). Persons who previously negotiated with the supplier,
(c). Dun & Bradstreet reports,
(d). Supplier's ranking among Fortune companies.
(24). Which of the following types of costs change in direct proportion to changes in the level of operational activity?
(a). Fixed,
(b). Variable,
(c). Standard,
(d). Direct.
(25). All of the following are elements considered in a cost analysis except:
(a). Direct Labor,
(b). Liability,
(c). Material,
(d). Profit.