Total Cost of Ownership (TCO) in Supply Chain Management Quiz

TCO analysis mainly focuses on one-time costs rather than recurring costs.

Activity-based costing (ABC) is not related to TCO analysis.

Total cost of ownership (TCO) is relevant only for businesses and not applicable in personal decision-making.

In TCO analysis, accurately allocating manufacturing overhead is not a significant challenge.

Shifting focus from price to total cost is not necessary for supply managers.

TCO analysis of equipment purchases does not consider maintenance and parts expenditures.

TCO can be accurately estimated without involving different functions within an organization.

Supply managers should focus solely on the price of materials, services, and equipment, rather than the total cost of ownership.

TCO analysis should not be used on recurring material costs.

TCO analysis of equipment purchases usually does a lot to help reduce the expenditures for maintenance and parts over the lives of the investments.

Accurately allocating manufacturing overhead to products being purchased is an easy problem to resolve in TCO analysis.

Activity-based costing (ABC) is a technique for directly assigning costs consumed by the object.

TCO is not an analytical tool, but rather a philosophy.

Accurate estimation of total costs requires a cross-functional approach, not just extensive time and motion studies by supply management.

TCO is not applicable in one's private life to enable better decision-making.