Certified Contract Management Associate Practice Test

What is a job task under price or cost analysis?

1. Evaluate seller terms

2. Develop negotiation objectives

3. Create negotiation strategy

4. Validate the marketplace analysis

The correct answer is: Evaluate seller terms

Evaluating seller terms is a key job task under price or cost analysis as it involves a thorough examination of the conditions and proposals offered by sellers. This process is essential for understanding how well a seller's offer aligns with market conditions and the overall value being presented. During price or cost analysis, professionals assess the details of seller terms, such as pricing, payment terms, delivery schedules, and any additional fees that may be associated with the offer. This evaluation ensures that the organization is making informed decisions and securing the best possible agreements. The other tasks mentioned—developing negotiation objectives, creating a negotiation strategy, and validating marketplace analysis—also play important roles in the overall procurement and negotiation processes but do not directly fall under the specific scope of price or cost analysis.