ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Of the following, which is usually the easiest to control?
|
|
Transportation costs
|
|
|
Raw material costs
|
|
|
Production costs
|
|
|
Design costs
|
Explanation:
Detailed explanation-1: -Cost Control focuses on decreasing the total cost of production while cost reduction focuses on decreasing per unit cost of a product. Cost Control is a temporary process in nature. Unlike Cost Reduction which is a permanent process. The process of cost control will be completed when the specified target is achieved.
Detailed explanation-2: -Some examples of cost control are: Making use of early payment discounts. Negotiating favourable prices with suppliers. Using an expense management system to track and reduce employee expenses.
Detailed explanation-3: -Production cost factors typically include labor, raw materials, equipment, rent, and other supplies or overhead.
There is 1 question to complete.