A major problem in TCO analysis of manufacturers is accurate allocation of manufacturing overhead.

Question

Quizplus · Accepted Answer

Allocating manufacturing overhead costs accurately is a major challenge in total cost of ownership (TCO) analysis for manufacturers. This is because overhead costs are indirect costs that cannot be easily traced back to a specific product or process. Different methods and techniques are used to allocate these costs, but the accuracy of the allocation can significantly impact the TCO calculation.

A Major Problem in TCO Analysis of Manufacturers Is Accurate