Given a Customer's Tiered Pricing Model, Determine the Appropriate Characteristics of Volume-Based or Term-Based Discount Schedules. CPQ-ADMINISTRATOR Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which element is essential to a volume-based discount schedule?

   • AA discount that increases with the number of users added.
   • BTier thresholds defined by quantity purchased.
   • CContract length measured in months.
   • DA fixed discount percentage applied to all orders.
   Reveal Solution Discussion Select an answer first
2. 7expert · hard

   A company sells both physical goods and annual service contracts. For physical goods, 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. However, they also want to offer a combined discount when a customer purchases both goods and a service contract in the same quote. Which approach should the administrator take?

   • ACreate a single discount schedule that uses the same discount percentage for both quantity and term.
   • BCreate separate volume-based and term-based discount schedules, and then create a price rule to combine the discounts when both are present.
   • CCreate a single volume-based discount schedule and apply it to both physical goods and service contracts.
   • DCreate a single term-based discount schedule and apply it to both physical goods and service contracts.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   A customer is considering a 3-year contract for a steady volume of 200 units per year. Which discount schedule is most appropriate?

   • ATerm-based discount schedule.
   • BVolume-based discount schedule.
   • CA discount based on the customer's annual revenue.
   • DNo discount, as the volume is too low.
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5. 9foundation · easy

   In a tiered pricing model, what does a 'price break' represent?

   • AA fixed percentage discount applied to all units regardless of quantity.
   • BA discount applied only to the first unit in an order.
   • CA penalty applied when a customer cancels a contract early.
   • DA threshold at which the unit price changes to a new rate.
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A software company sells annual subscriptions. They want to encourage customers to commit to longer contracts by offering a discount that increases with the number of years in the contract. The discount should be 5% for a 1-year term, 10% for a 2-year term, and 15% for a 3-year term. The discount must be applied automatically based on the contract term selected on the quote. Which configuration should the administrator use?

   • ACreate a single discount schedule with a flat 15% discount for any contract term of 1 year or more.
   • BCreate a term-based discount schedule with tiers for 1 year, 2 years, and 3 years, each with the corresponding discount percentage.
   • CCreate a price rule that requires the sales rep to manually enter the discount percentage for each quote.
   • DCreate a volume-based discount schedule with tiers for 1, 2, and 3 units, each with the corresponding discount percentage.
   Reveal Solution Discussion Select an answer first