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Supply Chain Management (SCM) MCQs
The Total Cost of Ownership (TCO) includes ____.
8. The Total Cost of Ownership (TCO) includes ____.
- Only the purchase price of a product
- Acquisition costs, operating costs, and end-of-life costs
- Transportation costs only
- Labor costs associated with production
Answer
The correct answer is: B) Acquisition costs, operating costs, and end-of-life costs
Explanation
TCO considers all costs associated with owning and using a product or service, including acquisition, operating, and disposal costs.