BUAD 289 Chapter 10 T/F

Accepting a price discount for ordering larger quantities leads to lower levels of anticipation inventory

False

An escalator clause provides for an increase, but not a decrease, in price if costs change

False

Governments typically play no role in establishing prices on regulating how buyers and sellers are allowed to behave in agreeing on prices

False

Information regarding price trends cannot be easily obtained because most organizations are reluctant to share cost and price information

False

The purchasing manager indexes (PMIs) are lagging economic indicators derived from monthly surveys of purchasing managers about forecasted company conditions

False

Farmers turn to marketing and production contracts when they perceive the efficacy of spot markets to be inadequate in handling their risks, and processors turn to contracts as a way to encourage farmers to produce specific products at desired times

True

Competitive bidding, in general, is the most efficient means of obtaining a fair price for items bought

True

Canceling a contract for a technicality when market prices are falling is considered an unacceptable and unethical practice

True