discussion question

Chapter 11- Strategic Cost Management Discussion Questions #1. Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not? #3. Is global sourcing always the lowest-cost option on account of the low labour rates? What other types of data have to go into this decision? #4. What is the difference among a fixed cost, a semi-variable cost, and a variable cost? #15. What happens if a supplier cannot meet a purchaser's initial target price? How is this issue resolved