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

Question

Quizplus · Accepted Answer

Long-term contracts are based on the notion that purchase volume rises, which leads to favorable cost structures. These contracts provide suppliers with a long-term outlook and enable them to plan their production, resources and labor. The longer the contract, the higher the likelihood of obtaining favorable prices, rebates, or other incentives.

____ Are Based on the Notion That as Purchase Volume