Please choose one answer and clearly identify the choice!!

While cost analysis is a process of analyzing each individual cost element that add up to final price, price analysis is a process of comparing supplier prices against external price benchmarks without knowledge of supplier costs. Price analysis entails the analysis of market structure including EXCEPT:

A::Relative similarity of competitive products

B::Past performance of existing suppliers

C::Number of competitors in industry

D::Existing barriers to entry for new suppliers to enter the market

Among the market-driven pricing models, revenue pricing model is concerned about:

A::long run profitability based on market share obtained

B::maximization of profit by inducing buyers to buy more with price discount

C::generating revenue to cover costs than profits or to achieve its target capacity utilization.

D::focus on reacing to actual competitor pricing

Bid is an offer to set a price tag by individual or business for a product/service. In auction or stock exchange, a bid is price offer an individual is willing to pay; in purchasing program, a bid is price offer a business is willing to sell. Invitation for bid (IFB) is a call to potential suppliers to submit a price offer for a specific product/service. Effective execution of competitive bidding requires EXCEPT:

A::Marketplace is competitive (i.e., many suppliers).

B::Buyer does not have preferred supplier for particular item.

C::Specifications or requirements are clear to supplier.

D::Purchasing volume is small.

Cost-based contract is used when there is high risk of large supplier contingency fee that would be included in fixed-price contract. Which of the following is NOT true about cost-based contract?

A::Buyer and seller must agree on allowable costs.

B::Generally applicable when goods and/or services are inexpensive and economic uncertainty is not present.

C::Risk is transferred from supplier to buyer.

D::Need to include terms and conditions that require supplier to carefully monitor and control costs.