Data for a Factory -
Strategic Cost Management Is a Management Accounting Technique with

question 5

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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Strategic cost management is a management accounting technique with the following important supply chain implications

• A)Progressive cost cuts are required from suppliers
• B)Enables JIT supply and purchasing based on knowledge of suppliers
• C)Sharing of cost and output data enables benefits of partnership sourcing
• D)Competition between supply chains rather than individual firms

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Definitions:

Point Scores

A method used in job evaluation that assigns numeric scores to different aspects of a job's requirements to assess its relative worth.

Correlation Coefficient

A numerical measure that indicates the degree and direction of a relationship between two or more variables, with values ranging between -1 and 1.

Market Pay Line

A graphical line in a compensation analysis showing the relationship between the job's importance or level and the average market pay rate for that job.

"Goodness Of Fit"

A statistical measure that evaluates how well a model or hypothesis matches observed data or outcomes.