The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________.
A) activity-based cost
B) customer profitability analysis
C) total customer cost
D) product life-cycle cost
E) direct product profitability

Question

Quizplus · Accepted Answer

Total customer cost includes all costs associated with evaluating, obtaining, using, and disposing of a market offering, such as purchase price, installation, operation costs, maintenance, repairs, and disposal expenses. Activity-based cost is a method of cost accounting that assigns costs to activities based on their use of resources, while customer profitability analysis is a method of assessing the profitability of customers, not the costs they incur. Product life-cycle cost refers to the total cost of bringing a product to market and managing it throughout its life cycle, while direct product profitability is a measure of a product's profitability based on revenue and direct costs.

The Bundle of Costs Customers Expect to Incur in Evaluating