The Cost of a System Over Its Entire Life Cycle

question 95

Multiple Choice

The cost of a system over its entire life cycle is called the ________.

• A)total cost of ownership
• B)base price
• C)both A and B
• D)neither A nor B

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Definitions:

Unit Price

The cost of a single item or unit of measure for goods or services, facilitating comparison of costs among similar items.

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent or salaries.

Cost-Volume-Profit Graph

A visual representation that shows the relationship between a company's costs, sales volume, and profits, helping in decision-making and planning.

Fixed and Variable

Costs or expenses that a company may incur, with fixed costs being constant regardless of activities, and variable costs fluctuating with business activity levels.