CIPS Exam L4M3 Topic 8 Question 37 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 37
Topic #: 8

[All L4M3 Questions]

Which of the following should be used in a contract for window cleaning during the next three months?

AVariable pricing arrangement

BFixed pricing arrangement

CStandard schedule of rates

DCost-plus arrangement

Show Suggested Answer

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 Marjory at Jun 24, 2024, 03:27 PM

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Leslee

6 hours ago

I agree with Haydee, a fixed pricing arrangement provides clarity and stability.

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Haydee

5 days ago

I think a fixed pricing arrangement would be best for budgeting purposes.

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