MAJOR ELEC C

CHAPTER 3:

Logistic Cost- can be better described by using a variety of methods allocating costs to products.

Appraisal- this comprises the costs incurred in detecting defects, which would include testing and
inspection.

Direct Cost- concerned with the extent to which cost can be allocated directly to a given product.

Activity-Based-Costing- seeks to understand what factor drive costs.

Traditional Cost- accounting tends to understand profits on high volume products.

Suppliers- interested in such benefits as long-term business.

Return on Investment- important measure for assessing shareholder value.

Return on Investment- widely used method for measuring share value.

Asset Efficiency- sales divided by the value of the firm’s total assets less current liabilities.

Customer- theory most important stakeholders in a free market economy.

Prevention- comprises the cost of measures to prevent defects from taking place.

Creditors- people we owe money to.

Internal & External Failure- internal cost are crap, rework.

Variable Cost- change as the volume of activity changes.

Value from the end customer’s point of view is the Perceived Benefit gained from product/service
compare with the cost of purchase.

What are the five distinct management processes

Plan- Source- Make- Deliver- Return

CHAPTER 4:

The concept of relocating business processes to the company’s original country is called. reshoring

Which is an example of indirect exporting none of the above

One of the more obvious disadvantages of operating a company in global manner is the most advantage of
consolidated transportation true

Complete the following sentence: when a firm distributes its product abroad, it can experience increased
return or economies of scale in no exception, they can be applied to all the above
Which is NOT a form of active exporting all of the above is form of active exporting

Which is NOT a way to source internationally set up a marketing subsidiary to supervise a network of
distributors

Suggest that in order to comply with regulations of a foreign country to sell food products there, it may be
necessary to do all of the following, except to: remove gluten from the product

Which mode of transportation moves the majority of international goods ocean shipping

Why are total landed costs difficult to calculate all of the above

Internationally operating companies are not on a constant quest to find new cheaper sources of labor and
materials false

Global consolidation occurs as managers seek to make the best use of their assets and to secure the
lowest- cost resources true

Consolidation of purchasing applies only to commodity goods but also to high-value or scarce resources
true

When a firm increases the firm of production in response to higher demand manufacturing cost per unit
go down

The concept of relocating business process to locations that are cheaper and geographically closer to the
regions where the products will be sold is called nearshoring

What is NOT a good motivation to engage in international distribution decrease complexity in

operations

In order to remain competitive in the international business environment, companies seek to higher their
cost while enhancing the service they provide to customers false

Proper handling of goods has particularly significance for the management of global logistics
pipeline true

Which option for structuring global operations is the most- efficient for firms no option is necessarily
more cost-efficient for all firms

Logistics practices services may differ across countries as well as regulation on storage and transport.
Adjusting handling practices accordingly is a prerequisite for internationalization true

Trade barriers and transportation cost permitting, a firm will benefit from doing business internationally
by basing each value creating activity it performs at that location where economic, political, and cultural
conditions are more conductive to the performance of that activity. In other words, a firm can experience
location economies

Which activity is part of logistics management all of the above

Increasingly, supply chains involve relationships that cross international boundaries. Indicate which one
of the following is a challenge for going global returns and repairs of defective products
Which complexities are common for international shipping operations all of the above

Who performs the pre-shipment inspections pre- authorized private inspection companies

Which of the items bellow DOES NOT refer to an environmental driver of globalization of operations
economies of scale in production