Which of the following best describes a measure that determines the total costs associated with the acquisition and subsequent use of a given item or service from a given supplier?
A) TBO
B) TCO
C) ABC
D) ABM

Question

Quizplus · Accepted Answer

TCO (Total Cost of Ownership) is a measure that determines the complete cost associated with the acquisition and subsequent use of a given item or service from a given supplier. It takes into account not only the upfront purchase cost but also the cost of maintenance, repairs, and disposal. TBO (Total Benefits of Ownership), on the other hand, would refer to the total benefits associated with owning a given item or service. ABC (Activity-Based Costing) and ABM (Activity-Based Management) are costing and management methodologies used to allocate costs and resources to specific activities or products/services.

Which of the Following Best Describes a Measure That Determines