To Help Guide the Strategic Sourcing Process, Five Core Principles

question 12

Multiple Choice

To help guide the strategic sourcing process, five core principles are recognized as key drivers to achieve the desired levels of value, which one is not one of those core principles?

• A) Access the total value
• B) Develop individual sourcing strategies
• C) Evaluate internal requirements
• D) Drive continuous savings

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Definitions:

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.

Budget Performance Report

A financial report that compares actual financial results to the budgeted amounts for a specific period to assess performance.

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.