Which One of the Following Statements Is Correct Concerning Bid

question 203

Multiple Choice

Which one of the following statements is correct concerning bid prices?

• A) The competitor who wins the bid is the one who submits the highest bid price.
• B) The winning bid may be at a price that is below break-even especially if there is a related aftermarket for the product.
• C) A bid price is computed based on 110% of a firm's normal required return.
• D) A bid price should be computed based solely on the operating cash flows of the proposed project.
• E) A bid price should be computed based on a zero% required rate of return.

Grasp the concept of pay for knowledge systems and their benefits within high-flexibility organizations.

Understand the process of job evaluation and its significance in formulating compensation systems.

Identify the factors influencing the choice between base pay and performance pay.

Comprehend the implications of compensation design on employee behavior and organizational structure.

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Definitions:

Pricing Approach

Strategies and methodologies used by companies to set the selling price of their products or services, taking into account costs, market demand, competition, and profit margins.

Price-setting Process

The method by which a company determines the selling price of its products or services, considering costs, demand, competition, and profitability.

Pricing Strategies

Plans or methods employed by businesses to set, adjust, and present the prices of their products effectively to enhance sales and profitability.

Initial Price

The price at which a product or service is first offered for sale to the public.