In Portfolio Analysis,cost Analysis Can Be Used in the Acquisition

question 25

Multiple Choice

In portfolio analysis,cost analysis can be used in the acquisition of strategic goods or services to identify opportunities to:

• A)divide the spend for the item or service among multiple suppliers.
• B)avoid,eliminate or reduce costs in supplier switching costs.
• C)avoid,eliminate or reduce costs in buyer and supplier cost structures.
• D)avoid,eliminate or reduce costs in the supplier's cost structure.
• E)avoid,eliminate or reduce costs in the buyer's cost structure.

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Definitions:

Rate of Return

A measure of the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Holding Period

The duration of time an investment is held before being sold, which can affect the rate of return and tax implications.

Base Monthly Salary

The initial rate of compensation provided to an employee, excluding additional earnings such as bonuses, overtime, or commissions.

Commission

A fee paid for provided services, typically a percentage of the transaction value, common in sales and trading environments.