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Question 9: You need to create a purchase agreement between your company and a supplier. The
agreement will give you a 10 percent discount automatically on an item, after you purchase $10,000
US dollars' worth of that Item during a 12 month period.
Which Default commitment type should you use?
A. Product quantity commitment
B. Value commitment
C. Product value commitment
D. Product category value commitment
Correct Answer: C
Explanation:
There are four types of commitments:
Product quantity commitment - You purchase a specific quantity of a product.
Product value commitment - You purchase a specific currency amount of a product.
Product category value commitment - You purchase a specific currency amount in a
procurement category. The amount can be for a catalog item or a non-catalog item.
Value commitment - You purchase a specific currency amount of any product or in any
procurement category.
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