Question 1

________ value proposition centers on low-cost, reliable and friendly service.

Accepted Answer

Southwest Airlines is known for its value proposition that focuses on offering low-cost, reliable, and friendly service to its customers, distinguishing it from competitors.

Question 2

_________ must be analyzed relative to their value.

Accepted Answer

Cost drivers must be analyzed relative to their value because understanding the factors that cause a change in the overall costs of a product or service is crucial for effective financial management and strategic planning.

Question 3

Apple Computer has been very successful by acting as a _________ provider of personal computer hardware and software to a market.

Accepted Answer

Apple Computer has found success by targeting specific segments of the market with its unique and innovative products, making it a niche solution provider in the personal computer hardware and software industry.

Question 4

________ is the examination of the management of the flow of information, inventory, processes, and cash from the earliest supplier to the ultimate consumer.

Accepted Answer

Supply chain analysis focuses on examining the management of information, inventory, processes, and cash flow from the initial supplier to the final consumer, aiming to improve efficiency and effectiveness in the supply chain.

Question 5

The profit impact of cost reduction is much larger than the impact of increased __________.

Accepted Answer

The profit impact of cost reduction is much larger than the impact of increased sales because reducing costs directly increases the margin on each unit sold, thereby potentially increasing profit more significantly than simply increasing the volume of sales without addressing the cost structure.

Question 6

When TCO analysis is used for a project where costs are incurred over a period of time, the process is also known as a/an _________ analysis.

Accepted Answer

Life cycle cost analysis is used for projects where costs are incurred over a period of time, encompassing the total cost of ownership (TCO) from acquisition through disposal, including maintenance and operational costs.

Question 7

Historically, _________and _________ people have had responsibility for reporting, and in some cases managing, costs.

Accepted Answer

Historically, accounting and finance departments have been responsible for reporting and managing costs within organizations.

Question 8

Cost reduction should never be done in _________.

Accepted Answer

Cost reduction should not be done in isolation because it requires a comprehensive approach that considers the overall impact on the organization, including potential effects on quality, employee morale, and customer satisfaction. Isolating cost reduction efforts can lead to short-term savings that harm the organization's long-term health and competitiveness.

Question 9

Major research studies show that chief executive officers are consistently concerned about __________.

Accepted Answer

The answer of Major research studies show that chief executive...

Question 10

_________ relates to what processes, activities, and decisions actually create costs in your supply chain.

Accepted Answer

Cost driver analysis relates to identifying and analyzing the factors that drive or cause costs in a supply chain. It helps in understanding how different processes, activities, and decisions contribute to the overall costs.

Question 11

In the _________ quadrant, because you are buying products that are available from many sources in relatively large quantity, a little effort in careful purchasing makes a big difference in cost.

Accepted Answer

In the leverage quadrant, the focus is on products that are critical to the company's operations but are available from multiple suppliers. This means that by putting a bit of effort into shopping around and negotiating, a company can significantly reduce its costs.

Question 12

Strategic cost management as using cost management techniques to reduce the organization's ________ and improve ________ while supporting its value proposition.

Accepted Answer

Strategic cost management focuses on reducing the organization's costs and improving its profits, aligning with the organization's value proposition. This approach helps in optimizing financial performance while maintaining or enhancing the value offered to customers.

Question 13

________ providers often cater to the growing market for outsourcing professional services.

Accepted Answer

Full-service solution providers cater to the outsourcing market by offering comprehensive services that cover various professional needs, making them a preferred choice for businesses looking to outsource.

Question 14

Many researchers and business analysts believe that organizations are now competing ________ to________ rather than firm to firm.

Accepted Answer

Organizations are increasingly seen as competing supply chain to supply chain, rather than the traditional view of firm to firm. This perspective emphasizes the importance of the entire supply chain in achieving competitive advantage.

Question 15

At Intel, although accounting and finance have responsibility for developing tools to support supply management, it is the _________ who have the ultimate responsibility for delivering cost savings to the organization.

Accepted Answer

Supply managers have the ultimate responsibility for delivering cost savings to the organization, as they are directly involved in managing and optimizing the supply chain, including negotiating contracts and managing supplier relationships.

Question 16

_________ -based cost management is one possible solution to the many problems associated with traditional accounting systems.

Accepted Answer

Activity-based cost management addresses the limitations of traditional accounting by allocating costs more accurately to products or services based on the activities that generate those costs.

Question 17

A major difference between critical projects and strategic items is the _________ of the purchase.

Accepted Answer

Critical projects often involve purchases that are made infrequently, while strategic items may be purchased more regularly but are essential for the company's long-term goals.

Question 18

Production equipment is yet another example of a large _________ expenditure that has ongoing impact.

Accepted Answer

Production equipment is considered a capital expenditure because it involves a significant investment in long-term assets that will be used over time to generate revenue.

Question 19

_________ means analyzing the true cost of acquisition, use, maintenance, and disposal of a good, service, capital equipment, or process.

Accepted Answer

Total cost of ownership refers to the comprehensive assessment of the cost of acquiring, operating, maintaining, and disposing of an asset over its entire life cycle. This approach helps in understanding the long-term financial impact of procurement decisions.

Question 20

In general, _________ items are more costly because there aren't as great of economies of scale.

Accepted Answer

Non-standard items are more costly because they are not produced in large volumes, which means the economies of scale that help reduce the cost per unit for standard items do not apply.

Quiz 8: Supply Chain Cost Management