Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

Exercise 3

Supply chain management can be a major source of cost savings for manufacturing and service firms. A firm can reduce its costs by understanding the linkages it has with its suppliers and customers. A major factor in assessing and understanding these linkages is the measurement of costs across the supply chain. Activity-based costing is now assuming a major role in this measurement requirement. The role of ABC in supply chain management needs to be explored carefully.
Required:
Using Internet resources, answer the following questions. (In addition to a general search, you might try http://www.bettermanagement.com , and check out its library resources.)
1. What is supply chain management?
2. Why has supply chain management become such an important topic?
3. Are businesses actually measuring and using supply chain costs?
4. Why is ABC considered important in supply chain management?