The best way to evaluate price in the sourcing process is:
A) Fair price
B) Purchase price
C) Cost
D) Break even analysis
E) Total cost of ownership

Question

Quizplus · Accepted Answer

The total cost of ownership takes into account not only the initial purchase price, but also any additional costs that may be incurred throughout the product's lifecycle, such as maintenance, repairs, and disposal. By evaluating the total cost of ownership, a buyer can make a more informed decision about the true value of the product and which supplier can provide it at the most competitive price.

The Best Way to Evaluate Price in the Sourcing Process