Cost Modelling Mastery
33 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is cost modelling?

  • The process of creating a representation of costs (correct)
  • The process of creating a representation of investments
  • The process of creating a representation of profits
  • The process of creating a representation of revenue

What are the benefits of cost modelling?

  • It can predict future investments
  • It can predict future expenses (correct)
  • It can predict future revenue
  • It can predict future profits

In which industries can cost modelling be used?

  • In project management, manufacturing, and services (correct)
  • Only in services
  • Only in manufacturing
  • Only in project management

What are the three main cost components involved in making a cup of coffee according to the cost model in the text?

<p>Coffee beans, milk, and labour (B)</p> Signup and view all the answers

What is the objective of cost modelling?

<p>To provide a detailed understanding of where costs are incurred throughout a product's lifecycle or a project's duration (B)</p> Signup and view all the answers

What is the benefit of using cost modelling as a tool for effective stakeholder management?

<p>It allows stakeholders to understand the financial implications of various scenarios and strategies (B)</p> Signup and view all the answers

What is the main benefit of using cost modelling for strategic decisions?

<p>To estimate the costs of opening a new branch versus investing in online sales (B)</p> Signup and view all the answers

What is the purpose of cost modelling in resource optimisation?

<p>To highlight areas where costs are higher than necessary (B)</p> Signup and view all the answers

How can cost modelling be used for communication with stakeholders?

<p>To simplify complex financial data (A)</p> Signup and view all the answers

What can cost modelling provide a clear picture of?

<p>Where the money is going, why certain costs are necessary, and how they contribute to the final product (A)</p> Signup and view all the answers

Which of the following is a benefit of cost-modelling?

<p>It provides a common language for discussing financial matters (B)</p> Signup and view all the answers

What is the purpose of cost-modelling in managing stakeholder expectations?

<p>To justify investment decisions to stakeholders (B)</p> Signup and view all the answers

What can cost-modelling show to stakeholders?

<p>That the investment is a worthwhile investment that will pay off in the long run (B)</p> Signup and view all the answers

What is the impact of accurate cost-modelling on stakeholder relationships?

<p>It builds trust, prevents conflicts, and fosters a shared understanding of the financial challenges and opportunities facing the organization (C)</p> Signup and view all the answers

What is one way cost modelling can guide strategic decisions?

<p>By highlighting the long-term financial implications of different strategies (C)</p> Signup and view all the answers

How can cost modelling help with resource optimization?

<p>By highlighting areas where costs are higher than necessary (A)</p> Signup and view all the answers

What is one benefit of using cost modelling as a tool for effective stakeholder management?

<p>Providing transparency (A)</p> Signup and view all the answers

How can cost modelling be used in communication with stakeholders?

<p>By sharing a cost model that includes development costs, marketing expenses, overheads, and anticipated revenues (C)</p> Signup and view all the answers

What is cost modelling?

<p>The process of creating a model of costs (A)</p> Signup and view all the answers

In what areas can cost modelling be used?

<p>Project management, manufacturing, and services (D)</p> Signup and view all the answers

What is the benefit of cost modelling?

<p>To project the financial implications of a business decision (C)</p> Signup and view all the answers

What is the role of cost modelling in project management?

<p>To estimate the cost of a new project (A)</p> Signup and view all the answers

What is the role of cost modelling in manufacturing?

<p>To calculate the cost of producing a new product (A)</p> Signup and view all the answers

What are the three material costs involved in making a cup of coffee according to the cost model in the text?

<p>Coffee beans, milk, and sugar (B)</p> Signup and view all the answers

How much does it cost to make a cup of coffee in the cost model described in the text?

<p>£2.90 (A)</p> Signup and view all the answers

What are the overhead costs involved in making a cup of coffee according to the cost model in the text?

<p>Rent, utilities, and equipment (D)</p> Signup and view all the answers

What is the objective of cost modelling?

<p>To provide a detailed understanding of where costs are incurred throughout a product's lifecycle (D)</p> Signup and view all the answers

How can cost modelling contribute to effective stakeholder management?

<p>By providing an objective and detailed view of the potential costs associated with a particular project or product (B)</p> Signup and view all the answers

What role does cost-modelling play in stakeholder management?

<p>It helps in justifying investment decisions (A)</p> Signup and view all the answers

What is an example of how a manufacturing firm can use cost-modelling?

<p>To justify investment in new machinery (C)</p> Signup and view all the answers

What is the benefit of using cost-modelling for stakeholder management?

<p>It can build trust and prevent conflicts (D)</p> Signup and view all the answers

What is the purpose of creating a detailed cost model?

<p>To justify investment decisions to stakeholders (A)</p> Signup and view all the answers

What is the main benefit of accurate cost-modelling?

<p>It provides a common language for discussing financial matters (C)</p> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser