Competitive bidding is most effective when all of the following conditions apply except when _____.
A) the buying firm can provide qualified suppliers with clear descriptions of the items or services to be purchased
B) volume is high enough to justify the cost and effort
C) the firm does not have a preferred supplier
D) the item is new or technically complex, with only vague specifications
E) None of the above conditions apply to competitive bidding.

Question

Quizplus · Accepted Answer

Competitive bidding is not effective for new or technically complex items with vague specifications because it is difficult for suppliers to accurately price and bid on the item/service.

Competitive Bidding Is Most Effective When All of the Following