WorksheetsPurchasing Chapter 5 Review your Learning
Total questions: 10
Worksheet time: 50mins
Which is true about the prices charged by the most reputable vendors?
They normally allow payment according to the buyer’s schedules.
They normally charge lower prices than less reputable vendors.
They normally require payment upon delivery to keep prices low.
They normally charge higher prices than less reputable vendors.
Buyers who focus primarily on a product’s per-purchase- unit selling price
are best assured of receiving quality products.
do not normally receive either quality or value.
are best assured of receiving purchase value.
do not normally worry about their food costs.
Which concept is a traditional view of pricing?
Higher prices equal better image.
Price and cost may be unrelated.
Buyers cannot influence purchase price.
Cost plus value equals selling price.
What happens in a win–win negotiation?
The parties reach an agreement that benefits all concerned.
The parties change their negotiation objectives.
One party takes advantage of his or her position.
Neither party is required to make concessions or change position.
Which is an important characteristic for an effective negotiator?
Sticking to one issue
Avoiding disagreements
Listening carefully
Being aggressive
What type of negotiation position reflects when negotiation on a specific point should be concluded?
Fall-back
End-of-line
Termination
Compromise
What type of negotiation position reflects a buyer’s ideal outcome?
Fall-back
Going-in
Bottom-line
Common-ground
What can buyers do to establish a better negotiation position?
Be tolerant of delivery defects
Establish reasonable quality standards
Purchase specialty products
Emphasize product cost as primary
A vendor’s price reduction is a discount when it is
given to selected buyers.
applied to the net price.
offered to all buyers.
taken after payment is made.
Which amount would be typical for a prompt payment discount?
12%
4%
8%
16%
