1. Describe the differences between direct and indirect costs. How can a buyer use analysis of these costs to facilitate better buying decisions?
2. What can a buyer do if she suspects that suppliers are colluding?
3. Define each of the following, then identify the circumstances under which a buyer should (and should not) use each of the following:
   1. Cash discounts
   2. Quantity discounts
   3. Trade discounts
   4. Cumulative discounts
4. Why might a buyer wish to hedge a commodity purchase? How would the buyer do that?
5. Discuss whether or to what extent hedging removes all risk?
6. Discuss the ways in which forward buying and speculation are similar and different. Briefly discuss which is preferable in a professional purchasing context

each response needs a maximum of one paragraph.