Which of the following factors is NOT typically associated with hidden costs in extended supply chains?

Gain insight into CIPS Whole Life Asset Management with our comprehensive quiz. Hone your skills with multiple-choice questions and detailed explanations. Get prepared for your exam!

Administrative efficiency is not typically associated with hidden costs in extended supply chains because it generally refers to the effectiveness and streamlined processes of managing the supply chain. When administrative functions are efficient, they can reduce costs and improve overall performance, potentially minimizing hidden costs.

In contrast, stockholding costs, overseeing the supply chain, and obtaining senior management support can lead to hidden costs. For example, stockholding costs relate to the expenses incurred from holding inventory, which may not be immediately apparent but can significantly affect overall costs. Similarly, overseeing the supply chain involves various managerial resources that could incur costs not always accounted for, and senior management support often requires investment in resources that may not produce immediate visible benefits, thus contributing to hidden costs.

In summary, administrative efficiency contributes positively to the visibility and management of costs within the supply chain, setting it apart from the other options that are typically linked to hidden costs.

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