Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?
Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?
In procurement decisions, the total cost of ownership (TCO) model considers not just the purchase price but all costs associated with the lifecycle of a product. Life cycle costs include the initial purchase price, installation, operation, maintenance, and disposal costs. This comprehensive approach ensures all financial implications of acquiring and using a product are considered.
Life cycle costs