Question

Costco's strategy involves: Select one: a. is similar to WalMart's startegy b. creating asset utilization efficiencies c. increasing their COGS by supplying expensive but useful quality. d. Reducing labor costs by creating a variable costing model.

Answer 1

Costco strategy involves:

(a) is similar to Walmart's strategy

Costco runs on cost leadership strategy. This strategy maintains the lowest possible prices. Walmart also uses the cost leadership strategy.

"Lean" processes involves evaluating the value chain in order to:

(d) eliminate waste

Value can be defined as the amount of money which the customer wants to pay based on the satisfaction that the product will provide.Lean supply chain management is about removing unwanted or waste components from a process.Non valued components are those parts in the process that have a zero or negative return on investment.

JIT attempts to create efficiencies by:

(a) decreasing inventory to minimum levels

JIT eliminates the raw material, inventory & storage cost as the material purchased from supplier should directly go to the assembly line, i.e. to the production department. This principle envisages that there should be no intermediate stage like storekeeping, so there is no need of storing the material.

Financial accounting rules in many international countries are also called:

(c) IFRS

IFRS stands for International Financial Reporting Standards. IFRS is a set of accountig standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). The goal of IFRS is to provide a global framework for how public companies prepare & disclose their financial statements.