# Assessment 2

#### Most supply chain costs are clearly visible in your profit and loss statements, making them easy to identify and manage.

* [ ] True
*

&#x20;  False

**Notes to Learners**

Hidden costs disguise themselves as **"normal operations"** across multiple budget categories.

Reconciliation costs appear as **finance team salaries**. Fraud losses might be written off as **shrinkage or vendor discrepancies**. Cash flow gaps show up as **working capital needs** or **borrowing costs**.

Compliance burdens are scattered across **legal, operations, and quality departments**. Visibility gaps consume time across **customer service, logistics, and operations**.

This distribution makes hidden costs particularly dangerous. They're **substantial in aggregate** but **difficult to see** and **measure individually**.


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