Date of Defense

Spring 4-11-2000

Department

Marketing

First Advisor

Robert Landeros, Management

Second Advisor

Bruce Ferrin, Marketing

Third Advisor

Robert Reck, Marketing

Abstract

To remain competitive, firms must balance costs with other competitive factors such as quality and delivery. There is constant pressure on these firms to reduce operating costs without jeopardizing the product's performance. Low ultimate cost is the objective of purchasing, which involves more than just pricing. It includes transportation, packaging, handling, storage, and manufacturing costs. The ultimate cost will also include any costs associated with quality and delivery. These may be difficult to pinpoint and determine. Although price is only one component of the total cost, it is an important variable to analyze. Purchasers are expected to obtain the best value possible. Ideally, performing a cost analysis would provide a purchaser with the most valuable information for getting the best price possible. Cost analysis is the process of reviewing and evaluating the separate cost elements a producer incurs in making and selling an item.

Access Setting

Honors Thesis-Campus Only

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