Author Question: In the _____ contract, if the supplier can demonstrate actual cost savings through production ... (Read 121 times)

fbq8i · **on:** Jun 29, 2018

In the _____ contract, if the supplier can demonstrate actual cost savings through production efficiencies or substitution of materials, the resulting savings from the initial price targets are shared between the supplier and the purchaser at a predetermined rate.
a. time and materials
b. cost plus fixed fee
c. fixed-price with incentives
d. firm fixed price
e. fixed-price with escalation

Question 2

Which of the following statement pertaining to special pricing deals is false?
a. Special pricing deals include discounts, enhanced quantity discounts, and free goods.
b. Generally special pricing deals enhance brand equity.
c. Many consumers have been conditioned to expect special pricing deals.
d. The purpose of special pricing deals is to stimulate sales of the manufacturer's products.
e. Often retailers come to view price deals as the normal state of affairs.