1. (TCO 4) Which of the following is not a typical category where the opportunit

Question

1. (TCO 4) Which of the following is not a typical category where the opportunity to reduce costs is increased through early supplier involvement in design? (Points : 5)        Packaging costs may decrease through better design or planning.
       Transportation costs may decrease through better design or planning.
       Order quantities can be increased due to simpler, less expensive designs.
       Redesigns may be reduced, thereby saving money.
       Assembly changes may be reduced, thereby saving money. Question 2.2. (TCO 4) Which of the following is a typical consideration in favor of multiple sourcing? (Points : 5)        Lower total cost results from higher volume.
       Quality considerations require a single source.
       The buyer obtains more influence with a single source supplier.
       It meets local content requirements.
       There are lower costs to source, process, expedite, inspect.

Question 3.3. (TCO 4) Which of the following is not a typical advantage of local buying? (Points : 5)        Shorter lead times reduce inventory.
       Rush orders are filled faster.
       Disputes are usually more easily resolved.
       Implied social responsibilities to the community are fulfilled.
       Economies of scale are more efficient.

Question 4.4. (TCO 4) Which of the following is not one of the conditions demanding negotiation? (Points : 5)        It is impossible to estimate costs with a high degree of certainty.
       Price is not the only important variable.
       The market must consist of an adequate number of sellers.
       The purchasing firm anticipates a need to make changes in the specification.
       Special tooling of setup costs is a major factor. Question 5.5. (TCO 4) Which of the following is a typical consideration in favor of single sourcing? (Points : 5)        To meet customer's volume requirements
       To meet local content requirements
       Shorter lead times required
       Time to market not critical
       When the technology path is uncertain Question 6.6. (TCO 5) Which of the following is not a potential problem with application of a learning curve? (Points : 5)        Nonuniform learning rate
       Large learning curve effects
       Low-labor-content items
       Incorrect learning rates
       Established items Question 7.7. (TCO 5) What was not recommended by the textbook to be included in documentation in a price analysis report? (Points : 5)        Whether to develop the supplier as an alliance
       Information that was considered
       Weight given to each piece of information and why
       Logic supporting the determination that a seller's price is or is not reasonable
       Soundness of that logic (logic supporting the determination that a seller's price is or is not reasonable) Question 8.8. (TCO 5) Which of the following statements is typically not true about target costing? (Points : 5)        Target costing focuses on the price the customer will be willing to pay for a product or service.
       After removing a reasonable profit from the price, the target cost is identified.
       Calculation of the target cost enables designers to focus on meeting the needs of the customer within the target cost constraint.
       Supply professionals can apply target costing to analyses of a supplier's products and services.
       Target costing requires ABC. Question 9.9. (TCO 5) Which of the following is a typical direct cost category? (Points : 5)        Material included in product
       Engineering overhead
       Material overhead
       Manufacturing overhead
       General and administrative Question 10.10. (TCO 5) Which of the following is not one of the six categories of cost presented in the textbook? (Points : 5)        Price of goods
       Variable manufacturing costs
       Fixed manufacturing costs
       Semivariable costs
       Total production costs Question 11.11. (TCO 5) Which of the following is not a cost-type arrangement? (Points : 5)        Cost reimbursement
       Cost plus hidden charges
       Cost plus fixed fee
       Cost plus award fee
       Cost without fee Question 12.12. (TCO 5) A supplier that is under an FFP contract may end up losing money and request relief. Why will the customer allow changing the price? (Points : 5)        Customer did not contribute to the loss
       Customer does not need the items
       Customer assumes no other suppliers are available
       Supplier has facilities that are not unique
       Plenty of time to find a new supplier Question 13.13. (TCO 5) Which of the following is not typical of a CPFF arrangement? (Points : 5)        Buying firm pays a fixed fee and all costs beyond fee
       Fee is for an unlimited scope of work
       Supplier has no incentive to control costs
       Characterized by low supplier profit
       A total liability limit usually established Question 14.14. (TCO 5) The compensation arrangement determines all of the following except the _____. (Points : 5)        Degree and timing of the cost responsibility assumed by the supplier
       Amount of profit or fee available to the supplier
       Capability of the supplier with respect to quality
       Motivational implications of the fee portion of the compensation arrangements Question 15.15. (TCO 6) Which of the following is not true of mediation? (Points : 5)        If negotiation fails, the disputants can consider mediation,
       Mediation involves introducing a third party into the discussion.
       Mediation always results in the two parties ceasing all business dealings.
       The mediator's role is to listen, sympathize, empathize, coax, cajole, and persuade.
       One thing the mediator may not do is decide anything. 1. (TCO 4) Which of the following is not a typical category where the opportunity to reduce costs is increased through early supplier involvement in design? (Points : 5)        Packaging costs may decrease through better design or planning.
       Transportation costs may decrease through better design or planning.
       Order quantities can be increased due to simpler, less expensive designs.
       Redesigns may be reduced, thereby saving money.
       Assembly changes may be reduced, thereby saving money.

Explanation / Answer

1."Order quantities can be increased due to simpler, less expensive designs" is the correct option. Earlier involvement of supplier will result in decreased packaging costs, redesign costs, transportation costs and assembly changing costs. The increased order quantities have no effect on the cost and type of designs.

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