Exam L4M3 Topic 2 Question 4 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 4
Topic #: 2
Under a price adjustment agreement, which of the following would be supplier's justification for increasing unit price?

Suggested Answer: A Vote an answer

Normally in a price adjustment agreement, the supplier is allowed to change price based on an indexation, which is published by a third party (for example, government or exchange market). The selected indices often associate with input materials of supplier. For instance, the plastics manufacturer may adjust their price based on crude oil price as oil is major input of producing plastics. Other suppliers may select different set of indices, such as Producer Perception Index.
In this question, only 'Rise in fuel price' could be a justification for supplier to increase price because:
- It may affect the input material price
- The index is checked and published by an independent third party.
Reference:
LO 3, AC 3.3

by Michael at May 08, 2025, 08:05 AM

Limited Time Offer

15%

Off

Get Premium L4M3 Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10