CTSC practice question 2 of 25

The SCOR level 1 metrics for the performance attribute of Cost are:

Full set: 151 questions

Answer options

A: total supply chain management and cost of goods sold (COGS). Correct answer

B: total supply chain management, COGS, and cash-to-cash cycle time.

C: earnings before interest and taxes (EBIT) as a percent of revenue and COGS.

D: total supply chain management and cash-to-cash cycle time.

Correct Answer:

A. total supply chain management and cost of goods sold (COGS).

Explanation

SCOR Digital Standard 12.0 defines two Level-1 Cost metrics: (1) Total Supply-Chain Management Cost (a.k.a. total cost to serve) and (2) Cost of Goods Sold. These collectively quantify both direct product costs and the broader cost of operating the supply chain, satisfying the cost performance attribute.

Why Incorrect

B. Adds cash-to-cash cycle time, an Asset Efficiency metric, not Cost.
C. EBIT % revenue belongs to the Finance perspective but is not a SCOR Level-1 metric.
D. Replaces COGS with cash-to-cash, mixing cost and asset metrics improperly.

References

1. SCOR Digital Standard 12.0, Table 2-4 “SCOR Level-1 Metrics”, p. 38.

2. APICS Dictionary 16th ed., entry “Total Supply-Chain Management Cost”.

3. APICS CTSC Learning System, Module 1, p. 1-28.

Question breakdown

Tests: Identify SCOR Level 1 metrics by performance attribute
Difficulty: Medium

Key idea: In SCOR, the Cost attribute's Level 1 metrics are total supply chain management cost and cost of goods sold. Cash-to-cash cycle time belongs to Asset Management Efficiency.

How to reach the answer

Recall SCOR's five attributes: Reliability, Responsiveness, Agility, Cost, and Asset Management Efficiency.
Cost metrics measure the expense of operating the supply chain, which means TSCM cost and COGS.
Cash-to-cash cycle time measures how efficiently assets are used, so it falls under Asset Management.
Eliminate any option containing cash-to-cash or EBIT, which leaves total SCM cost plus COGS.

Each option

ACorrect. Total supply chain management cost and COGS are the SCOR Level 1 Cost metrics.
BIncorrect. Cash-to-cash cycle time is an Asset Management Efficiency metric, not a Cost metric.
CIncorrect. EBIT as a percent of revenue is not a SCOR Level 1 Cost metric.
DIncorrect. This pairs a Cost metric with cash-to-cash cycle time, which belongs to a different attribute.

Common trap: Cash-to-cash cycle time feels financial, so candidates assume it belongs under Cost instead of Asset Management Efficiency.

In practice: When building a SCOR-based scorecard, teams assign metrics to the correct attribute so cost reduction is not confused with improvements in working capital.

Remember: SCOR Cost = TSCM cost + COGS; cash-to-cash, return on fixed assets, and return on working capital = Asset Management.

Drafted with AI assistance and checked against the answer key.

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