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Exam CSCP topic 1 question 45 discussion

Actual exam question from APICS's CSCP
Question #: 45
Topic #: 1
[All CSCP Questions]

A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

  • A. Price concessions
  • B. Make-or-buy
  • C. Distribution warehouse locations
  • D. Freight terms
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
by [deleted] at Sept. 29, 2022, 8:53 p.m.

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Jayleo058
9 months ago
Selected Answer: B
B, because if the supplier is constantly changing their prices and the manufacturer stays consistent it will eventually need to consider if its more cost effective to produce in house rather than deal with fluctuations.
upvoted 1 times
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Yesssir
1 year, 4 months ago
Selected Answer: A
Go for A since make/buy depends on TCO. Moreover, we should be concerned on the price by the supplier not their costing
upvoted 2 times
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[Removed]
2 years, 1 month ago
I will go A, since it will be more difficult to negotiate a price concession, if measured in activity based vs cost based.
upvoted 3 times
Apix1
1 year, 8 months ago
Answer is B, since you can't make an informed make/buy decision if both parties are measuring cost differently.
upvoted 2 times
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