Asked by connor Xiong on Jul 07, 2024
Verified
Cost management tools and techniques that may provide data for negotiations with internal organizational stakeholders and/or externally with suppliers include:
A) activity-based costing.
B) the learning curve.
C) total cost of ownership.
D) activity-based costing and total cost of ownership.
E) activity-based costing,the learning curve and total cost of ownership.
Activity-Based Costing
An accounting method that assigns costs to products or services based on the activities they require.
Total Cost of Ownership
An estimate of all direct and indirect costs associated with acquiring, operating, and maintaining a product or system over its entire lifecycle.
Learning Curve
A concept indicating that the more often a task is performed, the lower the cost of doing it will become, due to increased efficiency and familiarity with the process.
- Apprehend the vital importance and employment of cost management devices, including but not limited to activity-based costing, the learning curve, and total cost of ownership.
Verified Answer
FU
Frank UriasJul 09, 2024
Final Answer :
E
Explanation :
Activity-based costing can provide a detailed breakdown of costs by activity, allowing for targeted negotiations with internal stakeholders or suppliers. The learning curve can inform negotiation strategies by identifying potential cost savings resulting from increased production efficiencies. Total cost of ownership considers costs beyond the purchase price, such as maintenance and disposal, providing a comprehensive view for negotiation purposes. Therefore, the use of all three tools (activity-based costing, the learning curve, and total cost of ownership) would offer the best data for negotiations with internal organizational stakeholders and/or externally with suppliers.
Learning Objectives
- Apprehend the vital importance and employment of cost management devices, including but not limited to activity-based costing, the learning curve, and total cost of ownership.