BADM 324 Exam 1 Questions and
Answers 100% PASS
The market approach to pricing:
A.
implies that market analysis is the only technique that should be employed to
negotiate prices.
B.
implies that prices are set based on what the market will bear.
C.
means that prices are adjusted regularly to ensure that the seller recoups all its
marketing costs.
,D.
is the only defensible pricing mechanism for ethical companies to use.
E.
means prices are set to cover direct costs, contribute to indirect, and attain a profit.
- CORRECT ANSWER-B
If the buyer wants to motivate the seller to manage total costs, the best type of
contract is:
A.
cost-plus-incentive-fee (CPIF)
B.
cost-plus-fixed-fee (CPFF)
C.
cost-no-fee (CNF)
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,D.
firm-fixed-price (FFP)
E.
Both A and B - CORRECT ANSWER-A
A cash discount allows:
A.
the buyer to always calculate the discount based on the delivery date.
B.
the buyer to pay a lower price per unit, but has no benefits for the seller.
C.
the seller to demand payment in cash on demand (C.O.D.) upon receipt of goods.
D.
, the seller to secure prompt payment, but has no benefits for the buyer.
E.
the seller to secure prompt payment, and the buyer to pay a lower price per unit. -
CORRECT ANSWER-E
Items for which prices are comparatively low, and the cost of price reduction
efforts may exceed any price savings realized, are called:
A.
maintenance, repair, and operating supplies.
B.
capital assets.
C.
parts, components, and packaging.
D.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Answers 100% PASS
The market approach to pricing:
A.
implies that market analysis is the only technique that should be employed to
negotiate prices.
B.
implies that prices are set based on what the market will bear.
C.
means that prices are adjusted regularly to ensure that the seller recoups all its
marketing costs.
,D.
is the only defensible pricing mechanism for ethical companies to use.
E.
means prices are set to cover direct costs, contribute to indirect, and attain a profit.
- CORRECT ANSWER-B
If the buyer wants to motivate the seller to manage total costs, the best type of
contract is:
A.
cost-plus-incentive-fee (CPIF)
B.
cost-plus-fixed-fee (CPFF)
C.
cost-no-fee (CNF)
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,D.
firm-fixed-price (FFP)
E.
Both A and B - CORRECT ANSWER-A
A cash discount allows:
A.
the buyer to always calculate the discount based on the delivery date.
B.
the buyer to pay a lower price per unit, but has no benefits for the seller.
C.
the seller to demand payment in cash on demand (C.O.D.) upon receipt of goods.
D.
, the seller to secure prompt payment, but has no benefits for the buyer.
E.
the seller to secure prompt payment, and the buyer to pay a lower price per unit. -
CORRECT ANSWER-E
Items for which prices are comparatively low, and the cost of price reduction
efforts may exceed any price savings realized, are called:
A.
maintenance, repair, and operating supplies.
B.
capital assets.
C.
parts, components, and packaging.
D.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
