Question

Explain the term supply chain and its importance to cost management.

A.

Supply chain describes the flow of​ goods, services, and information from the initial sources of materials and services to the delivery of products to consumers within an individual organization. Cost management is most effective when it integrates and coordinates activities across each business function in an individual​ company's value chain.

B.

Supply chain describes the sequence of business functions in which customer usefulness is added to products or services. Cost management is most effective when it integrates and coordinates activities across each business function in an individual​ company's value chain.

C.

Supply chain describes the sequence of business functions in which customer usefulness is added to products or services. Cost management is most effective when it integrates and coordinates activities across all companies in the supply chain as well as across each business function in an individual​ company's value chain.

D.

Supply chain describes the flow of​ goods, services, and information from the initial sources of materials and services to the delivery of products to​ consumers, regardless of whether those activities occur in the same organization or in other organizations. Cost management is most effective when it integrates and coordinates activities across all companies in the supply chain as well as across each business function in an individual​ company's value chain.

Answer 1

Solution:

The correct answer is option D.

Explantion: Supply chain is not does not describe sequence of business functions, in which cutomer usefulness is added to the product or services, so option B and C are not correct.

Supply chain is a term  is not relate to particular organization, it covers all kinds of organizations, so option A is not correct.

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