According to the total life cycle concept,minimizing the cost of ownership of a product over its useful life means:
A)maximizing the purchase price.
B)considering the initial purchase price as well as the costs of operating, maintaining and disposing of the product.
C)including costs incurred in the research development and engineering phase.
D)full costing.

Question

Quizplus · Accepted Answer

The total life cycle concept considers the entire life cycle of a product, including its purchase, operating, maintaining, and disposal costs. Minimizing the cost of ownership of a product over its useful life means taking into account all of these costs to determine the most cost-effective option, rather than just the initial purchase price. Therefore, option B is the best choice. Options A, C, and D do not address all of the costs associated with a product's life cycle.

According to the Total Life Cycle Concept,minimizing the Cost of Ownership