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When Using the Total Cost of Ownership Concept, Explain How

question 29

Essay

When using the Total Cost of Ownership concept, explain how a supplier with a higher unit price and higher tooling cost can end up being more cost effective than another supplier with a lower unit price and tooling cost.


Definitions:

Negative Reference Group

A group with which an individual identifies but wants to avoid belonging to due to its negative characteristics or values.

Internal Designation Group

A group formed within an organization or community based on assigned or self-selected identifying factors.

Positive Reference Group

A group to which an individual aspires or looks up to, which positively influences their behavior and attitudes.

Conforming Norm

A rule or standard of behavior that individuals in a society are expected to follow in order to fit in or be accepted by the group.

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