`A - - - - - - - - is a price in which the supplier and buyer agree that the supplier can charge a price based on actual costs incurred, plus a margin for profit'.
Answer(s): D
This should be an easy QUESTION NO :. The definition describes nicely one possible form of cost- based price. It is important to try to be able to distinguish cost from price. The 'target cost incentive' method of pricing might have been tempting as an answer, since the defi- nition shown mentions cost, but it mentions neither target nor incentive, and can therefore be ruled out.And whole life cost is a different concept altogether.
Because of the need for frequent or semi-frequent uses of competition, public sector buyers are less likely to find themselves in a close partnership arrangement with a supplier than private sector buy- ers. True or false?
Answer(s): B
This is true.
'Open tendering may impose a substantial administrative burden on the procurement function.' True or false?
Answer(s): A
Because a wide range of organisations (or even individuals) may respond to an open tender, consid- erable administrative resource may have to be devoted to analysing offers.
A 'mixed economy' is:
It is an economy in which the public and private sectors work together. This is now the norm in most countries, with private sector involvement to a greater or lesser extent. In North Korea there is a (rare example of a) planned economy, and in the United States there is a heavily market-led (pri-vate sector) economy.
The Kyoto Agreement is about:
It is about climate change. The other answers are simply made up.
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