Chapter 11 Final

Chapter 11 Final - TEST BANK Sourcing and Supply Chain...

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TEST BANK Sourcing and Supply Chain Management – 4th edition Handfield, Monczka, Giunipero, and Patterson Chapter 11 True or False 1. The price paid for purchased products and services has no direct impact on the end customer’s perception of value provided by the organization. a. True b. False (p. 384) 2. Price analysis focuses simply on a seller’s price with little or no consideration given to the actual cost of production. a. True (p. 384) b. False 3. The majority of the cost of goods sold is driven by suppliers. a. True (p. 385) b. False 4. Strategic cost management approaches do not vary according to the stage of the product life cycle. a. True b. False (p. 385) 5. The major benefits from cost-reduction efforts occur when purchasing is involved late in the new-product/service development cycle. a. True b. False (p. 387) 6. Low-cost generics in which a competitive market with many potential suppliers exists should emphasize total delivered price. a. True (p. 387) b. False 7. When demand exceeds supply, a buyer’s market exists, and prices generally decrease. a. True b. False (p. 390) This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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8. When supply exceeds demand, a buyer’s market exists, and prices generally move downward. a. True (pp. 390-391) b. False 9. Examples of monopolies in the United States include the steel, automobile, and appliance industries. a. True b. False (p. 391) 10. Some sellers rely on a detailed analysis of internal cost structures to establish price, whereas others simply price at a level comparable to the competition. a. True (p. 392) b. False 11. In many cases, the price charged by a seller may have little or no relationship to actual costs. a. True (p. 392) b. False 12. Although a quantity discount has a positive effect on the purchase price, a buyer need not be cautious about the net impact on the total cost of an item. a. True b. False (p. 393) 13. The market-share model is also known as the penetration pricing model. a. True (p. 393) b. False 14. The opportunity cost of taking the supplier’s cash discount is almost always higher than the opportunity cost of not taking the cash discount. a. True b. False (p. 397) 15. In the long run, the seller must price at a level that covers all variable costs of production, contributes to some portion of fixed costs, and contributes to some level of profit. a. True (p. 401) b. False This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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16. Building a TCO model is an easy task. a.
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Chapter 11 Final - TEST BANK Sourcing and Supply Chain...

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