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
