Spendwaterfall

Spendwaterfall
A . 2 and 4 only
B . 3 and 4 only
C . 1 and 2 only
D . 1 and 3 only

View Answer

Answer: A

Explanation:

Understanding where and with whom your supplier spends their money, or understanding the ‘cost breakdowns’ or ‘price build-up’ of the goods andservices you purchase from the supplier, will help you know

where and when they can offer price concessions.

Cost information can be expressed with more impact through graphs that can be created using Excel and PowerPoint or other softwares. There are two commonly used models known as ‘spend waterfall’

and ‘spend tree’. Spend waterfall shows the build-up of costs, while the spend tree shows all the spends that an organisation makes.

There is no graph known as ‘spend candlesticks’. Candlestick chart is astyle of financial chart used to describe price movements of a security, derivative, or currency.

The aggregate expenditure model is a method of calculating GDP. The aggregate expenditure model focuses on the relationships between production (GDP) and planned spending: GDP = planned

spending = consumption + investment + government purchases + net exports.