A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________ cost.
A) service warranty
B) out-of-pocket
C) life-cycle
D) facilitating services
E) value-augmentation

Question

Quizplus · Accepted Answer

The given formula reflects the life-cycle cost of a product, which includes its purchase cost, maintenance and repair cost (discounted), and salvage value (discounted). Therefore, option C, i.e., life-cycle, is the correct choice.

A Product's Purchase Cost Plus the Discounted Cost of Maintenance