SCM 371 EXAM 3 - STRATEGIC COST MANAGEMENT
VERIFIED ACCURATE STUDY GUIDE
Supply Chain Flow - Answers - raw materials supplier --> manufacturer --> retailer -->
consumer
Cost Sharing Problem - Answers - between raw materials supplier & manufacturer
Cost Allocation Problem - Answers - retailer
Strategic Cost Management - Answers - application of cost management techniques so
that they simultaneously improve the strategic position of a firm & reduce costs
Elements of Strategic Cost Management - Answers - - value proposition analysis
- supply chain analysis
- cost driver analysis
Value Proposition Analysis - Answers - - considers how an organization competes in the
marketplace
Ways an Organization can Compete - Answers - - cost leadership (low cost)
- innovation (doing things first)
- niche (meeting needs of specific segment)
- time/speed to market (adapting quickly)
- service/solution provider (deep understanding of customer)
Supply Chain Analysis - Answers - - what should we do ourselves, internally, vs what
should we outsource (make vs buy decision)
- who should we choose as service providers
- what kind of relationship should we have with providers
Cost Driver Analysis - Answers - - typical accounting data records what happened
- a cost driver analysis explains why something happened
- answer provided by cost driver analysis can lead to actions
Total Cost of Acquisition (TCA) - Answers - - purchasing focus
- maps the costs related to the supply of products
- can identify new sourcing & cost reduction opportunities
- can support supplier selection decisions
Execution Costs - Answers - cost of getting goods from supplier to the business
(materials management costs)
- transport, internal administration costs, etc.
VERIFIED ACCURATE STUDY GUIDE
Supply Chain Flow - Answers - raw materials supplier --> manufacturer --> retailer -->
consumer
Cost Sharing Problem - Answers - between raw materials supplier & manufacturer
Cost Allocation Problem - Answers - retailer
Strategic Cost Management - Answers - application of cost management techniques so
that they simultaneously improve the strategic position of a firm & reduce costs
Elements of Strategic Cost Management - Answers - - value proposition analysis
- supply chain analysis
- cost driver analysis
Value Proposition Analysis - Answers - - considers how an organization competes in the
marketplace
Ways an Organization can Compete - Answers - - cost leadership (low cost)
- innovation (doing things first)
- niche (meeting needs of specific segment)
- time/speed to market (adapting quickly)
- service/solution provider (deep understanding of customer)
Supply Chain Analysis - Answers - - what should we do ourselves, internally, vs what
should we outsource (make vs buy decision)
- who should we choose as service providers
- what kind of relationship should we have with providers
Cost Driver Analysis - Answers - - typical accounting data records what happened
- a cost driver analysis explains why something happened
- answer provided by cost driver analysis can lead to actions
Total Cost of Acquisition (TCA) - Answers - - purchasing focus
- maps the costs related to the supply of products
- can identify new sourcing & cost reduction opportunities
- can support supplier selection decisions
Execution Costs - Answers - cost of getting goods from supplier to the business
(materials management costs)
- transport, internal administration costs, etc.
