10 Questions
Which step involves the determination of the service elements that will directly or indirectly impact upon the costs of service?
Step 2
What is the basic tenet of activity-based costing (ABC)?
Cost drivers should be identified
What is the purpose of logistics cost analysis?
To allocate resources efficiently
Which factor is considered in the determination of service costs?
Product mix
What is the purpose of identifying specific resources used to support customer segments?
To meet customer service requirements
Which step involves attributing activity costs by customer type or segment?
Step 4
What is the purpose of identifying cost drivers in activity-based costing?
To allocate costs accurately
What is the purpose of logistics and supply chain management?
To meet customer service requirements
Which step involves identifying factors that contribute to variations in the cost of service?
Step 1
What principle is used to determine incremental costs in logistics cost analysis?
Avoidability
Test your knowledge on supply chain missions and their impact on activity center/functional area costs. Learn about mission costing and how it differs from traditional budgeting techniques.
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