Certified Supply Chain Professional (CSCP) Practice Exam

What does the term 'current price' signify?

1. The price fixed at the beginning of a contract

2. The price being paid at the moment

3. The estimated future price of goods

4. The price that includes taxes and fees

The correct answer is: The price being paid at the moment

The term 'current price' signifies the price being paid at the moment, reflecting the most recent transaction or market rate for a good or service. It aligns with real-time market dynamics and provides insight into the immediate economic value of an item. The current price can fluctuate based on various factors, including demand and supply, and is a critical concept in supply chain management as it affects purchasing decisions and inventory management. In contrast, the concept of a fixed price at the beginning of a contract relates to contractual agreements and commitments, which may or may not reflect real-time market changes. Similarly, the estimated future price of goods concerns projections and forecasts rather than actual transaction values, and the price that includes taxes and fees involves additional costs rather than just the base price. Therefore, the focus on the immediate, transactional aspect of the current price is what makes it the correct understanding of this term.