From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.Group of answer choicesCost plus fixed fee (CPFF)Cost plus incentive fee (CPIF)Cost plus award fee (CPAF)Cost plus percentage of costs (CPPC)

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.Group of answer choicesCost plus fixed fee (CPFF)Cost plus award fee (CPAF)Fixed-price incentive fee (FPIF)Cost plus incentive fee (CPIF)

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.Group of answer choicesCost-reimbursableFixed-price incentive feeLump sumFirm-fixed-price

For make-or-buy decisions, relevant costs include:Group of answer choicesdifferential costs plus fixed costsincremental costs plus differential costsincremental costs plus sunk costsincremental costs plus opportunity costs

Powerful suppliers capture more value by charging higher prices, limiting quality or services, or shifting cost to industry participants. Which of the following supplier-related factor will impose constraints on the profitability of the industry participants?Group of answer choicessuppliers depend heavily on the industrysuppliers are less concentrated than industry participantscredible threat of forward integrationmany substitutes being available for supplier products

When making short-term decisions whether to accept special orders at reduced prices, the most relevant factor is:Group of answer choicesfixed costs.variable costs.none of the options are relevant.existence of spare capacity.