The Total Cost of Ownership for Supplier a Is $2,670,000

question 43

Multiple Choice

The total cost of ownership for Supplier A is $2,670,000.The total cost of ownership for Supplier B is $1,750,000.The total cost of ownership for Supplier C is $2,990,000.Using Total Cost Analysis, it will be more cost-effective to use

• A) Supplier A
• B) Supplier B
• C) Supplier C
• D) Cannot be determined

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Definitions:

Capacity

The legal competency to enter into agreements or contracts, often related to age, mental state, and understanding of obligations.

Valid Contract

A legally binding agreement between parties to do or not do certain things.

Avoid Liability

Strategies or actions taken to minimize or evade legal responsibility or penalties.

Intoxicated Person

An individual under the influence of alcohol or drugs to the extent that their mental and physical faculties are significantly impaired.