Are you reviewing to become a Certified Professional in Supply Chain Management? Then, you should focus your attention in reviewing for CPSM 1B4 because it covers a large section of 20 pages with 8 questions in CPSM Exam 1. This section is worth the effort of studying detail by detail because of the gravity of its points and it speaks to the central purpose of traditional purchasing manager’s role in companies.



The leaders of companies ask the supply leader about the costs of organizations thus, it is essential to be clear about the topics of CPSM 1B4: Performing Cost/Benefit Analyses on Acquisitions.

There are several topics in CPSM 1B4, but this article would only focus on indirect costs and target costs.

Indirect Cost

Indirect costs are those expenses that are not specifically identified with the supplied item being referred to. Hence, in the event that you purchase packaging material you need to remember that you have officially put resources to a specific packaging gear. The investment and depreciation of the machine is fixed cost and you can’t do much about them. The electricity and work utilized on the packaging machine varies with the amount the packaging line is used.

Why would it be a good idea for you to think about indirect cost of equipment if your main job is to purchase packaging material?

More often you find that your supplier choices gets restricted when your supplies can do just a few things. As you get an idea and understanding on the packaging material business sector, you get more educated about newer types of supplies that are friendlier to the environment.

Target Costs

Target Costs is the fascinating concept of arriving at a target cost for raw materials, components particularly for new products. Let us say that your organization has figured out that a new product can be sold at $1 a pack given consumer feedback, competitive offerings and projected sales volumes.

Do you want to pass the CPSM Exam without a fuss? You can get your CPSM Review materials from us, Jack Quinn Solutions, LLC.

Jack Quinn Solutions, LLC provides you with trainings and skill development for you to achieve a better career opportunity! We can train you and bring out the best in you.

If you want to have a salary increase or become a leader in your company, all you have to do is visit or and participate in our review courses!

adr international Alabama Alaska american production and inventory control american production and inventory control society American Samoa apics courses apics inventory managemen apics inventory management Arizona Arkansas association for operations management Blog boot bootcamp business buyer California camp certification for supply chain management certification in scm certification in supply chain certification in supply chain management certification supply chain management certified certified in supply management certified profession in supply management certified purchasing manager certification chain Colorado Connecticut council of supply chain management courses cpm cpsm cpsm certification csm Delaware District of Columbia e sourcing tools exam Executives florida Georgia Guam Hawaii Idaho Illinois Indiana institute institute supply chain instructor development program inventory purchasing Iowa ism it procurement consultants jpmorgan global manufacturing pmi Kansas Kentucky leveraging diversity in the workplace logistics Louisiana Maine management manufacturing report Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Northern Marianas Islands Ohio Oklahoma online Oregon Pennsylvania pmi ism prep preparation procurement procurement classes procurement consultants procurement consulting procurement courses online procurement learning procurement negotiation training procurement seminars procurement workshops production inventory control professional purchasing & inventory management purchasing and inventory management purchasing articles purchasing classes purchasing education and training purchasing inventory purchasing inventory management inventory purchasing scpro seminars sourcing consultants sourcing consulting sourcing services supplier diversity certification supply supply chain supply chain certification supply chain certifications supply chain management supply chain management certifications supply chain management professional supply management courses supply management tools technical sourcing international the association for operations management the council of supply chain management professionals training Viewpoints workshop