CCNP Pricing Analysis 2

Question 1

Which pricing model charges customers based on the number of units consumed or transactions processed?

Accepted Answer

Usage-based (variable) pricing

Answer

Usage-based pricing ties charges directly to consumption volume, aligning costs with actual use.

Question 2

In a Should-Cost analysis, which of the following is NOT typically included as a direct cost element?

Accepted Answer

Seller's profit margin

Answer

Seller's profit margin is a separate line item negotiated on top of direct costs, not part of the cost build-up itself.

Question 3

A supplier quotes $500,000 for a contract with $350,000 in direct costs. What is the supplier's markup percentage?

Accepted Answer

42.9%

Answer

Markup = ($500,000 - $350,000) / $350,000 × 100 = $150,000 / $350,000 ≈ 42.9%.

Question 4

Which escalation clause type ties price adjustments to a specific published government or industry index?

Accepted Answer

Index-based escalation

Answer

Index-based escalation links contract price changes to movements in a recognized index such as the CPI or PPI.

Question 5

When evaluating a supplier's overhead rate, a buyer should compare it against:

Accepted Answer

Industry benchmark overhead rates for similar firms

Answer

Benchmarking against industry norms helps identify whether the supplier's overhead is reasonable or inflated.

(CCNP) Certified Contract Negotiation Professional Practice Test