A Buyer May Try to Estimate the Life-Cycle Cost of Purchasing

question 26

Multiple Choice

A buyer may try to estimate the life-cycle cost of purchasing a product.Life-cycle cost is defined as the ________.

• A) product's purchase cost plus the total cost of maintenance and repair less any salvage value
• B) product's purchase cost plus discounted cost of maintenance and repair less any salvage value
• C) product's purchase cost plus discounted cost of maintenance and repair plus any salvage value.
• D) product's purchase cost plus any salvage value.
• E) product's purchase cost plus discounted cost of maintenance and repair

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Definitions:

Fuel-Efficient

A characteristic of a vehicle or machine that uses fuel in an effective manner, resulting in more output per unit of fuel consumed.

Eco-Efficient

Practices or processes that aim to reduce environmental impacts while maximizing productivity and resource efficiency.

Performance Measurement System

A set of metrics and analytical tools used to quantitatively assess the effectiveness and efficiency of an organization's operations against its objectives.

Triple Bottom Line

An accounting framework that incorporates three parts of sustainability: social, environmental, and financial performances.