Exam 8: Supply Chain Cost Management

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

Financial Accounting is a managerial accounting approach that attempts to match the indirect costs with the activities and products or services that actually generate those costs, the same way traditional accounting systems handle direct costs.

A TCO analysis presentation should include the quantitative results of the TCO analysis, as well as other "soft" factors that are more to quantify.

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

Many researchers and business analysts believe that organizations are now competing ________ to________ rather than firm to firm.

Brainstorming is a confusing approach for coming up with a laundry list of possible cost elements that will later be narrowed down, based on importance.

A business unit's use of the actual overhead services may stay constant, even if it can reduce direct labor costs.

Fill in the Blank(s) -A very large manufacturing operation must have high________ in order to be profitable.

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

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

In the _________ quadrant, because you are buying products that are available from many sources in relatively large quantity, a little effort in careful purchasing makes a big difference in cost.

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.

In order to have others in the organization embrace and accept the potential benefits of a TCO philosophy and analysis, it is critical to have a successful first project.

Apple Computer has been very successful by acting as a _________ provider of personal computer hardware and software to a market.

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

Fill in the Blank(s) -__________part may provide better performance, or lower operating costs.

Fill in the Blank(s) -The_________ vary over time and among different products and services.

Production equipment is yet another example of a large _________ expenditure that has ongoing impact.

________ providers often cater to the growing market for outsourcing professional services.

In general, _________ items are more costly because there aren't as great of economies of scale.