_____ involves unbundling the price paid and understanding the total cost of ownership over the life cycle of a product or service to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.
A)Cost management
B)Procure-to-pay
C)Supplier relationship management
D)Category management
E)Spend management

Question

Quizplus · Accepted Answer

Cost management involves analyzing and managing the costs involved in the production and delivery of a product or service. This includes understanding the total cost of ownership over the life cycle of the product, and determining a target cost and unit rate to ensure competitiveness in the marketplace. Procure-to-pay, supplier relationship management, category management, and spend management are all related concepts, but they do not specifically address the unbundling of pricing and understanding total cost of ownership.

_____ Involves Unbundling the Price Paid and Understanding the Total