If Costs Are Used as a Basis for Pricing,then Charging

question 23

Multiple Choice

If costs are used as a basis for pricing,then charging user divisions for unused capacity could result in:

• A)chaos.
• B)confusion.
• C)the downward demand spiral.
• D)misallocations.

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Definitions:

Supply Chain Management

Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management to efficiently produce and distribute goods and services.

Logistics

The detailed coordination and implementation of complex operations involving the movement of people or goods.

Value Chain Optimization

A strategic process aimed at improving efficiency and competitive advantage by analyzing and optimizing each step involved in producing a product or service.

Enterprise Resource Planning (ERP) Systems

Integrated software platforms that manage a company's core business processes, such as finance, supply chain, operations, reporting, manufacturing, and human resource activities.