Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following are considered tangible costs?

1. Costs associated with company reputation

2. Costs that have no market value

3. Costs that can be assigned a measurable value like market value

4. Costs related to customer satisfaction

The correct answer is: Costs that can be assigned a measurable value like market value

Tangible costs refer to costs that can be quantified and assigned a measurable value, typically having a direct impact on the financial statements of an organization. This includes expenses that are easily identifiable and can be expressed in monetary terms, such as raw materials, labor, and operational expenses. Choosing the option that reflects costs that can be assigned a measurable value like market value is correct because it directly aligns with the definition of tangible costs. These costs can be tracked, analyzed, and managed, making them critical in financial assessments and decision-making processes within supply chains and businesses. In contrast, costs associated with company reputation, costs with no market value, and costs related to customer satisfaction are classified as intangible costs. These costs may impact a company’s financial performance but cannot be easily quantified or measured in a straightforward way, making them more complex to account for in financial planning and accounting.