Certified Professional Contract Manager (CPCM) Practice Exam 2026 - Free CPCM Practice Questions and Study Guide

The activity that is associated with auction sales is competitive bidding among buyers. In an auction setting, potential buyers are present to bid against each other, with the intention of purchasing items. The bidding process creates a competitive environment where buyers place incremental bids, often with the hope of acquiring the item at the lowest possible price. This dynamic allows prices to fluctuate based on demand and interest, distinguishing auctions from fixed pricing agreements and regular retail sales where prices are set in advance. Auctions rely on the competitive spirit of buyers to drive prices, making competitive bidding not just integral but essential to how auctions operate.

The other options, while they pertain to sales, do not capture the essence of auctions. Fixed pricing agreements involve pre-established prices that do not change based on buyer interest. Regular sales at retail prices indicate a steady pricing model without competition-driven fluctuations. Sales conducted through direct negotiation involve discussions between buyer and seller to arrive at a price without the bidding process typical of an auction.