In TCO, _____ is the amount paid to the supplier for the product, service, or capital equipment.

Question

Quizplus · Accepted Answer

Purchase price refers to the amount paid to the supplier for the product, service, or capital equipment. This is also known as acquisition cost. Option A is also technically correct, but purchase price is a more commonly used term to refer to the amount paid to the supplier. Option B refers to the cost of using the product or service, while option C refers to the cost of disposing of the product at the end of its life cycle. Option E refers to the cost of forgoing an alternative opportunity.

In TCO, _____ Is the Amount Paid to the Supplier