QUESTION 22

1. When comparing costs between a current supplier and a new supplier, a manager should do all of the following EXCEPT:

		Compare the ease of doing business between the two suppliers
		Compare the unit cost of the new supplier's product vs the current supplier. If the new supplier has a higher unit cost, they should be eliminated for consideration
		Consider the capacity of the new supplier, can they ship in full truck loads or will they ship in less than truck loads (LTL)
		Compare the areas where the suppliers are located for congestion and an industrial base (for back hauls)

3 points

QUESTION 23

1. In what stage of the product life cycle would skimming or penetration pricing be acceptable?

		Introduction
		Growth
		Maturity
		Decline

3 points

QUESTION 24

1. Operating Expenses are considered:

		Wages, purchases, services that are extraneous to what a company is selling; also known as overhead.
		Wages, purchases, services that are used to create what a company is selling
		Wages, purchases, services used to create the company
		None of the above

5 points

QUESTION 25

1. Which of the following is NOT one of the essential elements of effective program management?

		Schedule/Time organization
		Scope/Quality management
		Budget Size/Duration of Project
		Cost/Resource administration

3 points

QUESTION 26

1. Which of the following is NOT a standard forecasting method?

		Cause and Effect
		The Roman method
		Historical Data
		Judgmental/Intuition

3 points

QUESTION 27

1. ________ - Costs = Profit

		Revenue
		Goals
		Assets
		Budget

5 points

QUESTION 28

1. When a purchase order has payment terms of 3/10, net 45 days, what does the "3/10" mean?

		if paid within 3 days, you get a 10% reduction in the cost
		if paid 10 days prior to the due day, you get a 3% discount
		If paid 3 days prior to the due day, you will receive a 10% discount
		if paid within 10 days, you get a 3% reduction in the cost