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APICS CTSC Exam - Topic 2 Question 46 Discussion

Actual exam question for APICS's CTSC exam
Question #: 46
Topic #: 2
[All CTSC Questions]

Which of the following metrics is measured as the value created by reducing or eliminating cost increases sought by supplier over and above prevailing baseline cost?

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Suggested Answer: D

According to the CTSC Exam Content Manual, avoidance cost is one of the metrics used to measure the value created by the procurement function1. Avoidance cost is defined as the value created by reducing or eliminating cost increases sought by suppliers over and above prevailing baseline cost1. Avoidance cost is also known as cost avoidance, which is a proactive measure to prevent unnecessary expenses or losses2. Avoidance cost is different from cost savings, which is the value created by reducing the actual cost paid to suppliers below the prevailing baseline cost1. Cost savings is also known as hard cost savings, which is actualized, quantifiable and verifiable3.


by Van at Jan 28, 2026, 11:20 PM

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Noe
5 days ago
I remember practicing a question about supplier negotiations and cost reductions, but I can't recall the exact term we used for that metric.
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Paris
10 days ago
I think this has something to do with cost savings metrics, but I'm not entirely sure which specific one it is.
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Winifred
15 days ago
Hm, not 100% sure on this. But I'll start by listing out the common procurement metrics and see which one fits the description best.
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Floyd
20 days ago
Ah, I recognize this type of question. It's testing our understanding of supplier cost management strategies. I'll draw on what I know about that.
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Von
25 days ago
I'm a bit unsure about this one. Is it asking about a specific procurement or supply chain metric? I'll need to review my notes on those.
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Ranee
1 month ago
Okay, I think I know this one. It's about measuring the value from negotiating down supplier cost increases, right? I'll focus on that angle.
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Nikita
1 month ago
Hmm, this seems like a tricky one. I'll need to think carefully about the different metrics and how they relate to supplier cost increases.
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