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NCMA CPCM Exam - Topic 6 Question 64 Discussion

Actual exam question for NCMA's CPCM exam
Question #: 64
Topic #: 6
[All CPCM Questions]

The risk avoiding buyer wants to minimize the risk of agreeing to a higher price than necessary to cover the buyer's costs plus a reasonable profit.

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Suggested Answer: D

by Ernie at Jan 05, 2023, 01:50 PM

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Wenona
4 months ago
Yeah, but what if the price is actually worth it?
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Erin
4 months ago
Wait, is that really how buyers think?
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Xochitl
4 months ago
Makes sense, who wants to lose money?
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Chantell
4 months ago
I disagree, sometimes they just want the best deal.
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Cordelia
4 months ago
Totally true, they want to avoid overpaying!
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Haley
5 months ago
I’m confused; I thought risk-averse buyers were more focused on minimizing losses rather than just price. Could be false?
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Nenita
5 months ago
I feel like this aligns with what we covered about buyer behavior, so I would lean towards true.
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Audrie
5 months ago
I'm not entirely sure, but I remember a practice question that discussed risk management in pricing. It might be false?
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Casey
5 months ago
I think the statement is true because risk-averse buyers typically want to avoid overpaying.
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Jennifer
5 months ago
Okay, let me see if I can break this down. AICPA is the American Institute of CPAs, so that's not it. CobiT is for IT governance, not general internal controls. ERME ISO doesn't ring a bell at all. I think I'm going to go with COSO on this one.
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Tyra
5 months ago
Hmm, I'm a bit unsure about how to handle the requirement to overwrite an existing Data Factory instance. I'll need to review the Azure pipeline documentation to see the best approach.
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Shaun
5 months ago
Hmm, I'm a bit unsure about this one. I'll need to carefully review each option to determine which one is the exception.
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Florinda
10 months ago
Reasonable profit? What is this, a charity? I say, squeeze that seller for all they're worth!
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Lorriane
9 months ago
True
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Ashanti
9 months ago
A) True
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Fidelia
9 months ago
Whoa, calm down! It's not about squeezing the seller, it's about making a fair deal.
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Fanny
9 months ago
B) False
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Lelia
9 months ago
A) True
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Brittni
9 months ago
B) False
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Elouise
9 months ago
A) True
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Lang
10 months ago
Ah, a classic risk-avoidance scenario. Sounds like the buyer's trying to play it safe and not get ripped off. Can't blame 'em, I guess.
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Caitlin
10 months ago
False, obviously. The buyer wants to maximize their profit, not minimize the seller's. Gotta get that deal, am I right?
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Franklyn
8 months ago
B) False
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Joni
8 months ago
False, obviously. The buyer wants to maximize their profit, not minimize the seller's. Gotta get that deal, am I right?
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Dino
8 months ago
B) False
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Mollie
8 months ago
A) True
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Charisse
9 months ago
A) True
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Iluminada
9 months ago
False, obviously. The buyer wants to maximize their profit, not minimize the seller's. Gotta get that deal, am I right?
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Tyra
9 months ago
B) False
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Corrie
10 months ago
A) True
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Shasta
10 months ago
True, for sure. I mean, who wants to end up paying more than they have to? Gotta look out for that bottom line.
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Robt
11 months ago
Hmm, this one's a tricky one. Gotta be careful not to overpay, but what counts as a 'reasonable profit'? Sounds like a tough balancing act.
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Deeanna
9 months ago
B) False
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Martin
9 months ago
It can be tricky, but it's important to do your research and negotiate to get the best deal.
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Tamala
9 months ago
A) True
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Angelyn
10 months ago
A) True
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Laurel
10 months ago
It's definitely a tough balancing act.
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Dorthy
10 months ago
B) False
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Marget
10 months ago
A) True
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Sanjuana
11 months ago
I think it's true because a risk avoiding buyer would want to minimize any potential losses.
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Bulah
11 months ago
B) False
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Sanjuana
11 months ago
A) True
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