(21). Which condition clearly indicates that negotiation is preferred over competitive bidding?

(a). Dollar volume of the potential buy is very large,

(b). Product isnt actually needed until five months into the future,

(c). Each firm that is competing is a technical giant in the field,

(d). There will be substantial pre-production engineering and tooling required.

(22). All of the following factors will strengthen the buying organizations position in a negotiation

except:

(a). Unclear specifications,

(b). Strongly competitive field,

(c). Lack of urgency for a contract,

(d). Thorough cost/price analysis.

(23). Which of the following is the least likely source of relevant information about a supplier when

planning a negotiation?

(a). External databases,

(b). Persons who previously negotiated with the supplier,

(c). Dun & Bradstreet reports,

(d). Suppliers ranking among Fortune companies.

(24). Which of the following types of costs change in direct proportion to changes in the level of

operational activity?

(a). Fixed,

(b). Variable,

(c). Standard,

(d). Direct.

(25). All of the following are elements considered in a cost analysis except:

(a). Direct Labor,

(b). Liability,

(c). Material,

(d). Profit.