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Exam CSCP topic 1 question 659 discussion

Actual exam question from APICS's CSCP
Question #: 659
Topic #: 1
[All CSCP Questions]

A firm that is experiencing a supply constraint for a fast-selling product determines that a reason for the constraint is the investment required to expand capacity. Which of the following types of contracts would be most appropriate for the firm to offer the supplier to increase output?

  • A. Cost sharing
  • B. Revenue sharing
  • C. Buyback
  • D. Joint venture
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Suggested Answer: D 🗳️

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Rajiv8047
11 months, 3 weeks ago
Selected Answer: A
cost-sharing contract, the buyer and supplier agree to share the costs of expanding the supplier's capacity. This type of contract is well-suited to situations where the buyer is experiencing a supply constraint for a fast-selling product and the supplier is hesitant to invest in expanding capacity due to the financial risk involved.
upvoted 1 times
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Daesma
1 year, 4 months ago
Selected Answer: A
The company can offer to share the costs of expanding production capacity, which may allow the supplier to increase production without assuming all the financial risk associated with the investment.
upvoted 2 times
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CSPark000
1 year, 5 months ago
Selected Answer: D
Why not D ?
upvoted 3 times
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Community vote distribution
A (35%)
C (25%)
B (20%)
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