Given a Customer's Tiered Pricing Model, Determine the Appropriate Characteristics of Volume-Based or Term-Based Discount Schedules. CPQ-ADMINISTRATOR Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A company sells both physical products and annual service contracts. For physical products, they want to offer discounts based on the number of units purchased. For service contracts, they want to offer discounts based on the length of the contract. Which approach should the administrator take?

   • ACreate a volume-based discount schedule for physical products and a term-based discount schedule for service contracts.
   • BCreate a single discount schedule that uses the same discount percentage for both quantity and term.
   • CCreate a single volume-based discount schedule and apply it to both physical products and service contracts.
   • DCreate a single term-based discount schedule and apply it to both physical products and service contracts.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   Which statement best describes a defining feature of a tiered pricing model?

   • AThe unit price decreases as the quantity purchased increases, with price breaks applied at specified thresholds.
   • BThe unit price increases as the quantity purchased increases to reflect higher demand.
   • CThe unit price is set individually for each customer based on their historical spend.
   • DThe unit price remains constant regardless of quantity, but a fixed discount is applied to the entire order.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   A customer is expected to make a single large purchase of 5,000 units. Which discount schedule is most appropriate?

   • AA flat discount applied to all orders.
   • BVolume-based discount schedule.
   • CTerm-based discount schedule.
   • DNo discount, as the purchase is a one-time event.
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5. 4application · medium

   A company wants to implement a tiered pricing model where the price per unit decreases as the quantity increases. They have three tiers: 1-50 units at $10, 51-100 units at $9, and 101+ units at $8. The administrator needs to configure this in CPQ. What is the most appropriate way to represent this model?

   • ACreate a volume-based discount schedule with tiers for 1-50, 51-100, and 101+ units, each with the corresponding discount percentage from list price.
   • BCreate a price rule that manually adjusts the price for each quote based on quantity.
   • CCreate a single price of $8 per unit for all quantities.
   • DCreate a term-based discount schedule with tiers for 1-50, 51-100, and 101+ units, each with the corresponding discount percentage from list price.
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A manufacturer sells industrial valves. Their standard price is $100 per unit. They want to reward customers who buy in larger quantities with a discount schedule that applies automatically at specific quantity thresholds. The schedule should be: 1-99 units at list price, 100-249 units at 5% off, 250-499 units at 10% off, and 500+ units at 15% off. The sales team needs to see the discounted price immediately on the quote line without manual calculation. Which configuration should the administrator use?

   • ACreate a single discount schedule with a flat 15% discount for all quantities above 100 units.
   • BCreate a price rule that triggers a discount only when the sales rep manually selects a discount tier on the quote.
   • CCreate a term-based discount schedule with tiers for 1-99, 100-249, 250-499, and 500+ units, each with the corresponding discount percentage.
   • DCreate a volume-based discount schedule with tiers for 1-99, 100-249, 250-499, and 500+ units, each with the corresponding discount percentage.
   Reveal Solution Discussion Select an answer first