Which of the Following Companies Is Using Cost Drivers Effectively

question 60

Multiple Choice

Which of the following companies is using cost drivers effectively to manage value chain activities cost efficiently?

• A) Company A orders large amounts of supplies and keeps them stocked until customer demand rises to prevent falling behind schedule in meeting customer needs.
• B) Company B uses just-in-time inventories and produces made-to-order products as and when customer demand rises.
• C) Company C collects customer requests first and starts processing them only after reaching a certain number.
• D) Company D routes all its supplies to a warehouse for storage and then transports them to individual factories for processing.
• E) Company E substitutes lower-cost inputs with high-quality, high-cost inputs to gain customer attention and loyalty.