The analysis of cost savings requires an industry-specific business system.Which of the following are requirements of an insightful industry-specific business system?
I.It uses a top-down approach.
II.It uses detail to identify the precise source of the savings.
III.It assigns each cost item of the target to one segment of the business system.
IV.It assigns the savings within the bidder's organization in the appropriate segments in the business system.

Question

Quizplus · Accepted Answer

For an industry-specific business system to provide insightful cost savings analysis, it should use a detailed approach to identify the exact source of savings (II) and assign each cost item to a segment in the business system (III). Additionally, it should allocate the savings within the bidder's organization according to the appropriate segments in the business system (IV). A top-down approach is not necessarily required for an insightful analysis, so (I) is not necessary. Therefore, the correct answer is (C), which includes II, III, and IV.

The Analysis of Cost Savings Requires an Industry-Specific Business System