SCMN 3730 FINAL EXAM 2026 ACTUAL QUESTIONS AND
SOLUTIONS SCORED A+
✔✔all costs associated with the acquisition, use and maintenance of a good or service -
✔✔total cost of ownership
✔✔pre-transaction components of total cost of ownership - ✔✔investigating sources
qualifying sources
training/education
✔✔transaction components of total cost of ownership - ✔✔price
order placement
transportation
tariffs/duties
billing/payment
inspection
return of parts
follow-up and correction
✔✔post-transaction components of total cost of ownership - ✔✔warranty issues
outbound logistics
✔✔person whom the action affects - ✔✔principal
✔✔person who acts - ✔✔agent
✔✔one person's welfare depends on what another person does - ✔✔agency
relationship
✔✔a contract where the payment amount does not depend on resources used or time
expended - ✔✔fixed price contract
✔✔a contract where a supplier is paid for all of its allowed expenses to a set limit plus
additional payment to allow for a profit - ✔✔cost based contract
✔✔contract type: price stated does not change, most basic and easiest contractual
mechanism - ✔✔firm fixed price
✔✔contract type: used for longer-term contracts where costs are likely to increase -
✔✔fixed price with escalation
✔✔contract type: used when parties cannot accurately predict costs and quantities -
✔✔fixed price with redetermination
, ✔✔contract type: terms and conditions allow cost savings sharing with supplier -
✔✔fixed price with incentives
✔✔contract type: similar to fixed price plus incentive except incentive is based on
changes in allowable costs - ✔✔cost plus incentive fee
✔✔contract type: costs are shared between parties on a predetermined basis - ✔✔cost
sharing
✔✔contract type: generally used in plant and equipment maintenance agreements -
✔✔time and materials
✔✔contract type: supplier receives reimbursement for all allowable costs up to a
predetermined level plus a fixed fee - ✔✔cost plus fixed fee
✔✔file a lawsuit in a federal/state/local court - ✔✔legal action
✔✔use of an impartial third party to resolve a contractual dispute - ✔✔arbitration
✔✔intervention by a third party to promote settlement, reconciliation, or compromise
between the parties - ✔✔mediation
✔✔an exchange of information between managers in each organization, followed by
negotiation - ✔✔mini-trial
✔✔a neutral party conducts a "trial" between the parties and is responsible for the final
judgment - ✔✔third party judgment
✔✔a progressive schedule of negotiation, mediation, arbitration, and legal proceedings
agreed to in the contract - ✔✔dispute prevention
✔✔a law with the goal of harmonizing the laws of sales and other commercial
transactions across the US - ✔✔uniform commercial code
✔✔provides standardized guidance for clarifying and interpreting contracts - ✔✔uniform
commercial code
✔✔authority as an agent of the organization in accordance with the instructions given
by the employer - ✔✔agency
✔✔legal authority as an agent: directly authorized as part of job duties - ✔✔express
authority
SOLUTIONS SCORED A+
✔✔all costs associated with the acquisition, use and maintenance of a good or service -
✔✔total cost of ownership
✔✔pre-transaction components of total cost of ownership - ✔✔investigating sources
qualifying sources
training/education
✔✔transaction components of total cost of ownership - ✔✔price
order placement
transportation
tariffs/duties
billing/payment
inspection
return of parts
follow-up and correction
✔✔post-transaction components of total cost of ownership - ✔✔warranty issues
outbound logistics
✔✔person whom the action affects - ✔✔principal
✔✔person who acts - ✔✔agent
✔✔one person's welfare depends on what another person does - ✔✔agency
relationship
✔✔a contract where the payment amount does not depend on resources used or time
expended - ✔✔fixed price contract
✔✔a contract where a supplier is paid for all of its allowed expenses to a set limit plus
additional payment to allow for a profit - ✔✔cost based contract
✔✔contract type: price stated does not change, most basic and easiest contractual
mechanism - ✔✔firm fixed price
✔✔contract type: used for longer-term contracts where costs are likely to increase -
✔✔fixed price with escalation
✔✔contract type: used when parties cannot accurately predict costs and quantities -
✔✔fixed price with redetermination
, ✔✔contract type: terms and conditions allow cost savings sharing with supplier -
✔✔fixed price with incentives
✔✔contract type: similar to fixed price plus incentive except incentive is based on
changes in allowable costs - ✔✔cost plus incentive fee
✔✔contract type: costs are shared between parties on a predetermined basis - ✔✔cost
sharing
✔✔contract type: generally used in plant and equipment maintenance agreements -
✔✔time and materials
✔✔contract type: supplier receives reimbursement for all allowable costs up to a
predetermined level plus a fixed fee - ✔✔cost plus fixed fee
✔✔file a lawsuit in a federal/state/local court - ✔✔legal action
✔✔use of an impartial third party to resolve a contractual dispute - ✔✔arbitration
✔✔intervention by a third party to promote settlement, reconciliation, or compromise
between the parties - ✔✔mediation
✔✔an exchange of information between managers in each organization, followed by
negotiation - ✔✔mini-trial
✔✔a neutral party conducts a "trial" between the parties and is responsible for the final
judgment - ✔✔third party judgment
✔✔a progressive schedule of negotiation, mediation, arbitration, and legal proceedings
agreed to in the contract - ✔✔dispute prevention
✔✔a law with the goal of harmonizing the laws of sales and other commercial
transactions across the US - ✔✔uniform commercial code
✔✔provides standardized guidance for clarifying and interpreting contracts - ✔✔uniform
commercial code
✔✔authority as an agent of the organization in accordance with the instructions given
by the employer - ✔✔agency
✔✔legal authority as an agent: directly authorized as part of job duties - ✔✔express
authority
