Which of the Following Is True of Corporate-Sustaining Costs

question 109

Multiple Choice

Which of the following is true of corporate-sustaining costs?

• A) are common to all individual customers
• B) have a clear cause-and-effect relationship with several cost-allocation bases
• C) should be allocated for decisions regarding reducing customer costs
• D) evaluates the effectiveness of sales personnel

Grasp the importance of aligning logistics and supply chain metrics with corporate strategy for achieving service quality, efficiency, or low-cost objectives.

Understand financial metrics and calculations relevant to supply chain and logistics, such as Gross Margin, Strategic Profit Model (SPM), and Earnings Before Interest and Taxes (EBIT).

Distinguish between metric, measure, and index, and understand the concept of order cycle time (OCT) and its implications.

Appreciate the importance of involving customers and suppliers in the development of metrics.

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Definitions:

Pollution

The introduction of contaminants into the natural environment, causing adverse change and harm to ecosystems and human health.

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to control air pollution.

Civil Penalties

Financial penalties imposed by a governmental entity as punishment for violating laws or regulations, differing from criminal penalties.

Criminal Penalties

Punishments imposed for violations of criminal law, which may include fines, imprisonment, probation, and other sanctions.