L3M3 Contract Administration Recap Week 4

Assume you calculate a selling price by adding a profit element onto costs. Assume the profit element is equivalent to 100% of costs.

Is mark-up or margin being described here?

• Mark-Up

• Margin

Profit is not a cost’... True or false?

• True

• False

What is the name given to costs which do not vary as activity levels in a business increase or decrease?

• Direct costs

• Variable costs

• Fixed costs

• Indirect costs

The letters ‘MEAT’ stand for:

• Main economically advanced tender

• Most environmentally advanced technology

• Most environmentally advantageous tender

• Most economically advantageous tender

A sum of money credited to a buyer by a seller in recognition of a large volume of purchases bought throughout the previous year might be called a:

• Historic refund

• Retrospective Rebate

• Retrospective Reward

• Vendor Debit

Revenue-earning possibilities which are foregone as a result of implementing a plan; the cost of not doing something else.

• Opportunity Cost

• Overhead Cost

• Indirect Cost

• Absorption Cost

Which one of the following is from the STEEPLE framework?

• Socio-economic

• Socio-technical

• Socio-logical

• Socio-cultural

• Socio-pathic

The CIPS Code of Conduct states that procurement professionals should not accept any business gifts under any circumstances. True or false?

• True

• False

Which STEEPLE factor deals with issues of foreign exchange rates, inflation, consumer spending, labour costs and unemployment levels?

• Political

• Legislative

• Economic

• Environmental

Looking specifically at how a quoted price compares to the cost of production is called:

• Price analysis

• Cost analysis

• Factor analysis

• Psycho analysis