Contracted unit price includes discounts but excludes which type?

Contracted unit price includes discounts but excludes which type?

• A. The negotiated discounts and commitment-based discounts
• B. The negotiated discounts and promotional discounts
• C. The base price with no discounts
• D. The negotiated discounts and all possible discounts

Answer: (C)

The price per unit under a contract is the amount after applying the agreed reductions. In a procurement contract, discounts such as negotiated reductions, commitment-based discounts, and promotional discounts are folded into the unit price, so the contracted unit price reflects those reductions and is what you actually pay. Therefore, what’s excluded is the base price with no discounts—the original price before any reductions. The base price is the starting point, not the price paid under the contract. In other words, the contracted unit price is the discounted price, not the undiscounted base price.

The price per unit under a contract is the amount after applying the agreed reductions. In a procurement contract, discounts such as negotiated reductions, commitment-based discounts, and promotional discounts are folded into the unit price, so the contracted unit price reflects those reductions and is what you actually pay.

Therefore, what’s excluded is the base price with no discounts—the original price before any reductions. The base price is the starting point, not the price paid under the contract.

In other words, the contracted unit price is the discounted price, not the undiscounted base price.