An understanding of total-life-cycle costs can lead to:
A)additional costs during the manufacturing cycle.
B)less need for the evaluation of opportunity costs.
C)cost effective product designs that are easier to service.
D)mutually beneficial relationships between buyers and sellers.

Question

Quizplus · Accepted Answer

Total-life-cycle costs take into account not only the initial manufacturing costs but also the costs incurred throughout the entire life of the product, including maintenance and servicing. Understanding these costs can lead to more cost-effective product designs that are easier to service, which can ultimately benefit both buyers and sellers. Option A is incorrect because understanding total-life-cycle costs can actually help identify and minimize additional costs during manufacturing. Option B is incorrect because accounting for opportunity costs is still important even when considering total-life-cycle costs.

An Understanding of Total-Life-Cycle Costs Can Lead To