MGMT 3300 Final Exam Questions With
Certified Answers
the zone of negotiation - Answeris perceived in exactly the same way by buyer and
seller in a negotiation
/.when developing a negotiation strategy, the negotiator should assess the positions of
strength of both (all) parties to: - Answerestablish negotiation points and avoid setting
unrealistic expectations
/.a US buyer may be discouraged from sourcing offshore if: - Answerthe political
situation in the country of interest is questionable
/.when sourcing offshore: - Answerthe buyer should learn about the culture, customs,
norms, taboos, and history of the supplier's country
/.the world has grown a good deal smaller, figuratively, in the last 60 years, with the
increased speed of transportation and communication - Answertrue
/.the process of attempting to determine all cost elements such as acquisition price,
purchasing administration, follow-up, expediting, inspection and testing, rework, scrap,
downtime, lost sales and customer returns is called: - Answertotal cost of ownership
/.total cost of ownership (TCO) can be used to: - Answerhighlight cost reduction
opportunities, compare suppliers in a supplier selection decision, prepare for a
negotiation and assess the reasonableness of a supplier's prices
/.the challenge in buyer-seller relationships is to find ways to foster the development of
trust and mutual understanding of the goals and objectives of each other's organization
while maintaining a professional relationship - Answertrue
/.purchasing represents the exchange of money for goods and services. often, a very
large amount of money is involved in this exchange. it is, therefore, vital that the
transactions associated with this process not be carried out at the highest ethical level -
Answerfalse
/.total cost of ownership definition - Answeracquisition price price all other associated
costs often called in-house costs of pre- and post-transaction costs
/.a cash discount allows: - Answerthe seller to secure prompt payment and the buyer to
pay a lower price per unit
/.if the buyer wants to motivate the seller to manage total costs, the best type of contract
is: - Answercost-plus-incentive-fee (CPIF)
Certified Answers
the zone of negotiation - Answeris perceived in exactly the same way by buyer and
seller in a negotiation
/.when developing a negotiation strategy, the negotiator should assess the positions of
strength of both (all) parties to: - Answerestablish negotiation points and avoid setting
unrealistic expectations
/.a US buyer may be discouraged from sourcing offshore if: - Answerthe political
situation in the country of interest is questionable
/.when sourcing offshore: - Answerthe buyer should learn about the culture, customs,
norms, taboos, and history of the supplier's country
/.the world has grown a good deal smaller, figuratively, in the last 60 years, with the
increased speed of transportation and communication - Answertrue
/.the process of attempting to determine all cost elements such as acquisition price,
purchasing administration, follow-up, expediting, inspection and testing, rework, scrap,
downtime, lost sales and customer returns is called: - Answertotal cost of ownership
/.total cost of ownership (TCO) can be used to: - Answerhighlight cost reduction
opportunities, compare suppliers in a supplier selection decision, prepare for a
negotiation and assess the reasonableness of a supplier's prices
/.the challenge in buyer-seller relationships is to find ways to foster the development of
trust and mutual understanding of the goals and objectives of each other's organization
while maintaining a professional relationship - Answertrue
/.purchasing represents the exchange of money for goods and services. often, a very
large amount of money is involved in this exchange. it is, therefore, vital that the
transactions associated with this process not be carried out at the highest ethical level -
Answerfalse
/.total cost of ownership definition - Answeracquisition price price all other associated
costs often called in-house costs of pre- and post-transaction costs
/.a cash discount allows: - Answerthe seller to secure prompt payment and the buyer to
pay a lower price per unit
/.if the buyer wants to motivate the seller to manage total costs, the best type of contract
is: - Answercost-plus-incentive-fee (CPIF)
