SCM CH 11 EXAM STUDY GUIDE
_____ = (Quality + Technology + Service + Cycle Time) ÷ Price.
a.
Cost
b.
Efficiency
c.
Value
d.
Total cost
e.
Target cost - ANSWER C
_____ refers to the process of comparing supplier prices against external price
benchmarks, without direct knowledge of the supplier's costs.
a.
Cost analysis
b.
Make-buy analysis
c.
Target costing
d.
Price analysis
e.
Total cost analysis - ANSWER D
_____ is the process of analyzing each individual cost element (i.e., material, labor hours
and rates, overhead, general and administrative costs, and profit) that together add up
,to the final price.
a.
Price analysis
b.
Cost analysis
c.
Cost analysis
d.
Total cost analysis
e.
Make-buy analysis - ANSWER B
_____ applies the price/cost equation across multiple processes that span two or more
organizations across a supply chain.
a.
Make-buy analysis
b.
Price analysis
c.
Cost analysis
d.
Target costing
e.
Total cost analysis - ANSWER E
In the framework for strategic cost management, _____ are high-value products or
services and can be sourced through traditional bidding approaches that require price
analysis using market forces to do the work and identify what is a competitive price.
a.
critical products
, b.
unique products
c.
custom-made products
d.
generics
e.
commodities - ANSWER E
Which of the following is not one of the categories of products in the strategic cost
management matrix?
a.
Commodities.
b.
One-time buys.
c.
Critical products.
d.
Unique products.
e.
Generics. - ANSWER B
A _____ is an analytical tool that identifies the primary external forces that are causing
prices to either increase or decrease.
a.
market analysis
b.
total cost analysis
c.
cost analysis
_____ = (Quality + Technology + Service + Cycle Time) ÷ Price.
a.
Cost
b.
Efficiency
c.
Value
d.
Total cost
e.
Target cost - ANSWER C
_____ refers to the process of comparing supplier prices against external price
benchmarks, without direct knowledge of the supplier's costs.
a.
Cost analysis
b.
Make-buy analysis
c.
Target costing
d.
Price analysis
e.
Total cost analysis - ANSWER D
_____ is the process of analyzing each individual cost element (i.e., material, labor hours
and rates, overhead, general and administrative costs, and profit) that together add up
,to the final price.
a.
Price analysis
b.
Cost analysis
c.
Cost analysis
d.
Total cost analysis
e.
Make-buy analysis - ANSWER B
_____ applies the price/cost equation across multiple processes that span two or more
organizations across a supply chain.
a.
Make-buy analysis
b.
Price analysis
c.
Cost analysis
d.
Target costing
e.
Total cost analysis - ANSWER E
In the framework for strategic cost management, _____ are high-value products or
services and can be sourced through traditional bidding approaches that require price
analysis using market forces to do the work and identify what is a competitive price.
a.
critical products
, b.
unique products
c.
custom-made products
d.
generics
e.
commodities - ANSWER E
Which of the following is not one of the categories of products in the strategic cost
management matrix?
a.
Commodities.
b.
One-time buys.
c.
Critical products.
d.
Unique products.
e.
Generics. - ANSWER B
A _____ is an analytical tool that identifies the primary external forces that are causing
prices to either increase or decrease.
a.
market analysis
b.
total cost analysis
c.
cost analysis
