In the Framework for Strategic Cost Management, _____ Are High-Value

question 46

Multiple Choice

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

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Definitions:

Managers

Individuals responsible for planning, organizing, leading, and controlling resources to achieve organizational goals.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Profit Centers

Divisions or departments within a business that are treated as separate entities for the purpose of financial reporting, with their own revenues and expenses.

Sales

Transactions between a seller and a buyer where goods or services are exchanged for money.