_____ are based on the notion that as purchase volume increase, cost structures change.
A)Short-term contracts
B)Firm fixed price contracts
C)Long-term contracts with incentives
D)Time and materials contracts
E)Blanket orders

Question

Quizplus · Accepted Answer

Long-term contracts with incentives are designed to encourage sellers to lower their costs and improve their efficiencies over time as purchase volume increases, resulting in cost savings for the buyer. The incentives in the contract provide motivation for the seller to achieve these goals, leading to a mutually beneficial relationship for both parties. This makes it the best choice for the given situation.

_____ Are Based on the Notion That as Purchase Volume