L3M2 Ethical Procurement and Supply Recap Week 1

What is Value...is it

• The cost of a product or service to the Org

• What the customer is willing to pay

• The cost of a product or service to the customer

• How much profit the Orgmakes

What is Added Value

• Adding Features

• The extras given to the customer

• The £ the Org adds on after costs

• Reducing Inputs

A Direct Cost is...

• An expense that stays the same regardless of volume production

• An expense related to a specific product or service

• An expense related to overhead costs.

• An expense that can fluctuate with volume production

A Indirect Cost is...

• An expense that stays the same regardless of volume production

• An expense related to a specific product or service

• An expense related to overhead costs.

• An expense that can fluctuate with volume production

A Fixed Cost is...

• An expense that stays the same regardless of volume production

• An expense related to a specific product or service

• An expense related to overhead costs.

• An expense that can fluctuate with volume production

A Variable Cost is...

• An expense that stays the same regardless of volume production

• An expense related to a specific product or service

• An expense related to overhead costs.

• An expense that can fluctuate with volume production

Value for Money (VfM) can be achieved through

• Cost Effectiveness and Efficiency

• Cost Affectiveness and Efficacy

• Cost Analysis and Breakdown

• Cost Reduction and Standardisation

Which is the odd one out...the 5 Rights of Procurement are

• Price

• Quality

• Quantity

• Time

• Position

Org success is made up of 5 factors: Customer, Resources...

• People

• Procedures

• Policies

• Purpose

VE and VA have the same systematic approach to providing the lowest cost for a product or service without losing functionality

• True

• False