Which of the Following Best Explains 'Strategic Cost Management

question 13

Multiple Choice

Which of the following best explains 'strategic cost management'? 

• A) The identification of all costs, cost drivers and strategies aimed at reducing or eliminating costs through the supply chain. 
• B) The identification of all costs, cost drivers and strategies aimed at reducing or eliminating errors. 
• C) The identification of all costs aimed at reducing or eliminating costs through the supply chain. 
• D) The identification of all costs, cost drivers and strategies aimed at reducing or eliminating costs through the distribution chain.

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Definitions:

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.

Semivariable Cost

Costs that have both fixed and variable components, changing in response to activity level but not directly proportional to it.