Question 1

Companies that use traditional accounting systems may aggregate and assign cost data accurately, so cost managers need not consider an activity-based approach to identify true costs and make better decisions.

Accepted Answer

Traditional accounting systems often allocate overhead costs based on a single volume measure, which can lead to inaccurate cost information. Activity-based costing (ABC) provides a more accurate method by assigning costs based on the activities that drive them, allowing for better decision-making.

Question 2

In order to be effective, everyone in the organization needs to have some responsibility and accountability for cost management.

Accepted Answer

Effective cost management requires a collective effort where everyone in the organization takes responsibility and accountability for controlling and reducing costs, ensuring a more sustainable and efficient operation.

Question 3

IBM follows a niche service provider approach in the information technology arena by selling computer hardware, providing staff to run the hardware and support the software at your location, providing help-desk support, and so on.

Accepted Answer

IBM offers a wide range of services and products beyond just niche services, including cloud computing, artificial intelligence, consulting, and systems integration, making it a broad-based technology and consulting company rather than a niche service provider.

Question 4

Decisions related to the design of the supply chain have major implications on the organization's cost structure, value proposition, and ability to compete.

Accepted Answer

Decisions related to the design of the supply chain directly impact how efficiently and effectively a company can produce and deliver its products or services, influencing costs, customer satisfaction, and competitive positioning.

Question 5

Hewlett-Packard has chosen to compete primarily as an innovator and hardware provider, rather than providing on-site support to replace an organization's information technology department.

Accepted Answer

Hewlett-Packard (HP) has historically focused on innovation in technology and providing hardware solutions, such as printers and computers, rather than offering extensive on-site support services to replace an organization's IT department.

Question 6

What according to amazon.com is their key cost driver? What have they done to reduce this cost?

Accepted Answer

The answer of What according to amazon.com is their key...

Question 7

Fill in the Blank(s)
-Understanding the supply chain begins with_______

Accepted Answer

The answer of Fill in the Blank(s)
-Understanding the supply chain...

Question 8

Costs and cost drivers are inherently bad; they must always be analyzed in relation to the value that they add to the organization.

Accepted Answer

Costs and cost drivers are not inherently bad; they are essential for understanding how resources are consumed and can help in making strategic decisions that add value to the organization.

Question 9

Fill in the Blank(s)
-Ideally, the costs are allocated based on actual expenses incurred, known as________ .

Accepted Answer

The answer of Fill in the Blank(s)
-Ideally, the costs are...

Question 10

Fill in the Blank(s)
-Apple has been extremely successful in executing a _______provider value proposition for its iPod.

Accepted Answer

The answer of Fill in the Blank(s)
-Apple has been extremely...

Question 11

The cost management matrix helps organizations determine the right cost management approach for a given situation.

Accepted Answer

The cost management matrix is a tool used by organizations to analyze and decide on the most appropriate cost management strategies based on specific situations, project requirements, or organizational goals.

Question 12

What is Southwest Airlines' value proposition? What are some key elements of its business design?

Accepted Answer

The answer of What is Southwest Airlines' value proposition? What...

Question 13

Fill in the Blank(s)
-TCO applies to the purchase of materials, parts, and services as well as to__________

Accepted Answer

The answer of Fill in the Blank(s)
-TCO applies to the...

Question 14

Fill in the Blank(s)
-___________involves reanalyzing the total model with different cost estimates to see how sensitive the model is to changes in those costs.

Accepted Answer

The answer of Fill in the Blank(s)
-___________involves reanalyzing the total...

Question 15

Fill in the Blank(s)
-For example, if you are a buyer, and are not aware of the_________ of your organization in selling its new line of widgets, you will have no way of gauging how to weight supplier selection criteria such as quality, price, and supplier technical innovation.

Accepted Answer

The answer of Fill in the Blank(s)
-For example, if you...

Question 16

Understanding value proposition analysis is the only way that you can effectively communicate with top management and make the right decisions to achieve organizational success.

Accepted Answer

Understanding value proposition analysis is a crucial aspect of effective communication with top management and making informed decisions for organizational success.

Question 17

What is cost driver analysis? Explain the four typical cost drivers in an organization.

Accepted Answer

The answer of What is cost driver analysis? Explain the...

Question 18

Does TCO apply to services as well? If so, please give an example.

Accepted Answer

The answer of Does TCO apply to services as well?...

Question 19

Fill in the Blank(s)
-___________is a valuable starting point for understanding cost issues and opportunities.

Accepted Answer

The answer of Fill in the Blank(s)
-___________is a valuable starting...

Question 20

What is the importance of awareness of value propositions? Give two industry examples.

Accepted Answer

The answer of What is the importance of awareness of...

Quiz 8: Supply Chain Cost Management

Companies that use traditional accounting systems may aggregate and assign cost data accurately, so cost managers need not consider an activity-based approach to identify true costs and make better decisions.

In order to be effective, everyone in the organization needs to have some responsibility and accountability for cost management.

IBM follows a niche service provider approach in the information technology arena by selling computer hardware, providing staff to run the hardware and support the software at your location, providing help-desk support, and so on.

Decisions related to the design of the supply chain have major implications on the organization's cost structure, value proposition, and ability to compete.

Hewlett-Packard has chosen to compete primarily as an innovator and hardware provider, rather than providing on-site support to replace an organization's information technology department.

What according to amazon.com is their key cost driver? What have they done to reduce this cost?

Fill in the Blank(s) -Understanding the supply chain begins with_______

Costs and cost drivers are inherently bad; they must always be analyzed in relation to the value that they add to the organization.

Fill in the Blank(s) -Ideally, the costs are allocated based on actual expenses incurred, known as________ .

Fill in the Blank(s) -Apple has been extremely successful in executing a _______provider value proposition for its iPod.

The cost management matrix helps organizations determine the right cost management approach for a given situation.

What is Southwest Airlines' value proposition? What are some key elements of its business design?

Fill in the Blank(s) -TCO applies to the purchase of materials, parts, and services as well as to__________

Fill in the Blank(s) -___________involves reanalyzing the total model with different cost estimates to see how sensitive the model is to changes in those costs.

Fill in the Blank(s) -For example, if you are a buyer, and are not aware of the_________ of your organization in selling its new line of widgets, you will have no way of gauging how to weight supplier selection criteria such as quality, price, and supplier technical innovation.

Understanding value proposition analysis is the only way that you can effectively communicate with top management and make the right decisions to achieve organizational success.

What is cost driver analysis? Explain the four typical cost drivers in an organization.

Does TCO apply to services as well? If so, please give an example.

Fill in the Blank(s) -___________is a valuable starting point for understanding cost issues and opportunities.

What is the importance of awareness of value propositions? Give two industry examples.