Important information about General Business Questions

1. What is the number one reason for global sourcing

2. What is the biggest risk in buying foreign made goods and services and what problems might incur

3. When are letters of credit typically required and how are they classified

4. What is total cost of ownership

5. What are three components of the total cost of ownership

6. What is downtime costs, cycle time costs, conversion costs, non value added costs, supply chain costs.

7.What is variable margin pricing

8. What are the six catergories of cost and which ones are used in making an incremental cost analysis

9. What are the five tools a supply manager can use to conduct a price analaysis

10. What are the three sources of cost data

11. What are the three categories of compensation arrangements

12. What is the potential danger of using a fixed price redetermination contract

13. What is the structure of a cost plus fixed fee contract and what shoud a supply professional do to ensure the legitimacy of the final cost.