Question

8. Accepting a price discount for ordering larger quantities leads to lower levels of anticipation inventory.

True or False

9. Prices may not be directly related to costs in the market approach

True or False

10. Farmers turn to market and production contracts when they perceive the efficacy of spot markets to be inadequate in handling their risks and processors turn to contracts as a way to encourage farmers to produce specific products at desired times.

Ture or False

11. Competitive bidding, in general, is the most efficient means of obtaining a fair price for items bought.

True or False

12. Fixed costs generally remain the same regardless of the number of units produced.

Ture or false

13. In formation regarding prices trends cannot be easily obtained because most organizations are reluctant to share cost and price information

True or False

14. The process for bidding in the public sector is generally similar to the private sector, although there are a few important differences.

True or False

15. The purchasing manager indexes( PMIs) are leading economic indicators derived from monthly surveys of purchasing managers about forecasted company conditions.

True or False

Answer 1

Question 8: False

Explanation: Accepting a price discount for larger quantities of orders does not lower the levels of anticipation because it generally supported by price-sensitive consumers and an opportunity to keep the costs low.

Question 9: True

Explanation: The other Ps in the marketing mix i.e., Product, Place, and Promotion are related directly to costs whereas the price of the product or service does not as it acts as the source of revenue for the company.

Question 10: True

Explanation: Making specific products at desired times helps the farmers to avoid risks as it focuses on the commodity delivered rather than the service provided. This helps to manage price, storage, and financial hedges.

Question 11: True

Explanation: Competetive bidding is the most efficient method for fair pricing because it puts together their best proposal for a product or service by creating a transparent environment that is open and fair.

Question 12: True

Explanation: Fixed costs like salaries, rents, insurance, etc., refer to the costs that are constant and do not change based on the production volume or business activity.

Question 13: False

Explanation: Information regarding the price trends can be anticipated based on the market conditions and the external or internal factors that affects the price of the product or service. This is also based on the supply and the demand for the product or service.

Question 14: True

Explanation: The two bidding process is almost the same for both the public and the private sector and some general divergences between them are the standard they follow. Public bidding is highly standardized whereas the private biddings are not restricted to a certain extent.

Question 15: False

Explanation: The purchasing manager indexes( PMIs) are derived from monthly surveys of supply chain managers and not the purchasing managers to determine the economic trends in the market.