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NEW QUESTION: 1
Competition between supply chains makes reducing costs a critical success factor, which of the following cost removal targets involves a one-time savings or continuing savings gained from paying less than was previously paid?
A. Collaborative cost takeout efforts
B. Cost savings
C. Process improvement
D. Loss leader pricing
Answer: B
Explanation:
Competition between supply chains makes reducing costs a critical success factor, Cost savings involves a one-time savings or continuing savings gained from paying less than was previously paid. Process improvements increase the efficiency and effectiveness of your processes. Collaborative cost takeout efforts result from mutually beneficial supplier relationships. And, you would use loss leader pricing if they seek to recover variable cost while enticing a buyer with a price that covers neither the fixed cost nor profit.