SCM Final 2026 Exam Questions with
100% Correct Answers | Latest Update
which of the following statements does not describe total cost of
ownership(TCO)?
A) it sets the maximum price the market will pay
B) it is a purchasing focused approach to understand all relevant costs
C) it maps the costs related to the supply of products
D) can support supplier selection decisions - 🧠ANSWER ✔✔A) it sets the
maximum price the market will pay
Target costing starts with?
A) profit we must earn
,B) competitors' benchmark prices
C) target cost of materials
D) market price
E) all of the above - 🧠ANSWER ✔✔D) market price
what are the main types of purchasing contracts?
A) transactional contract, financing contract, intermediation contract
B) fixed-price contract; cost-based contract
C) cost plus contract, time and materials contract
D) performance contract, object contract, non-contract
E) none of the above - 🧠ANSWER ✔✔B) fixed-price contract; cost-based
contract
a trend in contracting that is making contracting more useful and efficient is
A) plain language contracts
B) force majeure contracts
C) short-term contracts
D) oral contracts
, E) A and C - 🧠ANSWER ✔✔A) plain language contracts
the ____ term of the purchase agreement, the ____ firm fixed-price
contracts will be acceptable to the supplier
A) longer... more likely
B) longer... same likelihood that
C) shorter... more likely - 🧠ANSWER ✔✔C) shorter... more likely
A ___ is defined as a purchase that is made on a nonrecurring or limited
basis with little or no attention of development and ongoing relationship
with the supplier
A) purchasing alliance
B) long-term contract
C) short-term contract
D) spot contract
E) JIT contract - 🧠ANSWER ✔✔D) spot contract
should contracts have signature books? - 🧠ANSWER ✔✔no - not
necessary and we dont want to be partially compliant with our own rules
and practices
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
100% Correct Answers | Latest Update
which of the following statements does not describe total cost of
ownership(TCO)?
A) it sets the maximum price the market will pay
B) it is a purchasing focused approach to understand all relevant costs
C) it maps the costs related to the supply of products
D) can support supplier selection decisions - 🧠ANSWER ✔✔A) it sets the
maximum price the market will pay
Target costing starts with?
A) profit we must earn
,B) competitors' benchmark prices
C) target cost of materials
D) market price
E) all of the above - 🧠ANSWER ✔✔D) market price
what are the main types of purchasing contracts?
A) transactional contract, financing contract, intermediation contract
B) fixed-price contract; cost-based contract
C) cost plus contract, time and materials contract
D) performance contract, object contract, non-contract
E) none of the above - 🧠ANSWER ✔✔B) fixed-price contract; cost-based
contract
a trend in contracting that is making contracting more useful and efficient is
A) plain language contracts
B) force majeure contracts
C) short-term contracts
D) oral contracts
, E) A and C - 🧠ANSWER ✔✔A) plain language contracts
the ____ term of the purchase agreement, the ____ firm fixed-price
contracts will be acceptable to the supplier
A) longer... more likely
B) longer... same likelihood that
C) shorter... more likely - 🧠ANSWER ✔✔C) shorter... more likely
A ___ is defined as a purchase that is made on a nonrecurring or limited
basis with little or no attention of development and ongoing relationship
with the supplier
A) purchasing alliance
B) long-term contract
C) short-term contract
D) spot contract
E) JIT contract - 🧠ANSWER ✔✔D) spot contract
should contracts have signature books? - 🧠ANSWER ✔✔no - not
necessary and we dont want to be partially compliant with our own rules
and practices
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
