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CIPS Contract Administration Sample Questions:
1. What is the term for a situation where a seller sets a high introductory price for a new product, to attract buyers who have a strong desire to get the product early, and who can afford it? The price then gets gradually reduced over time.
A) Price discrimination
B) Promotional pricing
C) Contribution pricing
D) Market skimming
2. Which of the following are internal factors in supplier decision-making? Choose two.
A) Customer perceptions of value
B) Extent of competition in the marketplace
C) Shareholder and managerial expectations of profit
D) Cost of production
3. Revenue-earning possibilities which are foregone as a result of implementing a plan; the cost of not doing something else.
A) Overhead cost
B) Indirect cost
C) Absorption cost
D) Opportunity cost
4. Which of the following statements is untrue? Select two.
A) The framework arrangement establishes the basic terms and conditions that will apply to subsequent orders
B) A framework arrangement cannot be used for consultancy services, although it can be used for construction work.
C) In most cases, a framework arrangement is not itself a contract.
D) There is an obligation to buy under a framework arrangement
5. The official power to make legal decisions and judgments in a given location, for example
A) Jurisdiction
B) Jurassic
C) de jure
D) Jurisprudence
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C,D | Question # 3 Answer: D | Question # 4 Answer: B,D | Question # 5 Answer: A |
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