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CIPS Commercial Contracting L4M3 Question # 23 Topic 3 Discussion

CIPS Commercial Contracting L4M3 Question # 23 Topic 3 Discussion

L4M3 Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3

A category buyer is purchasing medical gases for a hospital, but is experiencing volatile and unfavourable market conditions due to multiple global external factors. Owing to the volatility, the hospital's finance director has tasked the buyer with providing certainty of costs for the next 18 months. Which of the following pricing methods will enable budgeting certainty, despite the highly volatile market conditions?


A.

A fixed pricing arrangement


B.

A cost plus award fee agreement


C.

Fixed pricing with economic price adjustments


D.

A penetration pricing strategy


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