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CIPS L4M3 Exam - Topic 8 Question 12 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 12
Topic #: 8
[All L4M3 Questions]

Which of the following is always an advantage of using fixed price arrangement in a contract for buying organisation?

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Suggested Answer: A

Advantages of using fixed pricing arrangement are as below:

- Budget/income certainty - prices are fixed up front and should not change

- The impact of changes to the supplier's cost base is not fed through to the purchaser. If costs diminish, the supplier will benefit from this, and if costs rise, the purchaser will benefit


LO 3, AC 3.3

by Charlene at Feb 02, 2023, 06:03 PM

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Desmond
4 months ago
Is it really always an advantage? Sounds too good to be true.
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Phillip
4 months ago
Wow, I didn't know fixed prices were good for long contracts!
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Tawna
4 months ago
C seems off, suppliers can lose out if costs rise.
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Dortha
4 months ago
I disagree, fixed prices can be risky if market prices drop.
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Viva
4 months ago
A is definitely true, helps with budgeting!
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Florinda
5 months ago
I’m a bit confused about option D; I don’t think the duration of the contract is always a factor in fixed pricing.
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Garry
5 months ago
I think we had a practice question about fixed price contracts, and I recall that they provide budget certainty, which points to A.
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Georgiann
5 months ago
I'm not entirely sure, but I feel like option B could be a possibility too, since it mentions market prices.
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Bev
5 months ago
I remember studying that fixed price contracts help buyers manage their budgets better, so I think option A makes sense.
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Pearly
5 months ago
Process decision program chart (PDPC) sounds like the most relevant tool to analyze the material handling process and who should be involved. I'll focus on understanding how to apply PDPC in this type of scenario.
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Cristina
5 months ago
I'm pretty sure the answer is C, the Electronic Transactions Act. That makes the most sense to me in terms of establishing a basis for the "TrustSg" mark to build trust in e-commerce transactions.
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Pauline
5 months ago
Okay, I think I've got this. Based on the requirement for 99.9% service availability, the "Anti-DDoS Service Pro" option seems like the most suitable choice. I'll mark that one down.
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Emerson
5 months ago
Hmm, this is a good one. I think the key is to figure out why the critical APs aren't registering on the backup WLC. I'll need to look at the AP fallback and failover priority settings on both the failed WLC and the backup WLC.
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