Which of the Following Best Describes Customer Life-Cycle Costs

question 155

Multiple Choice

Which of the following best describes customer life-cycle costs?

• A) costs incurred by the selling company to satisfy the customer.
• B) costs to the customers for buying and using a product.
• C) same as the selling life-cycle prices.
• D) replacement costs of using a product or service.

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Definitions:

Safety Inventory

Extra inventory held by a company to prevent stockouts caused by uncertainties in demand or supply, ensuring product availability.

Product Availability

The extent to which a product can be purchased or obtained when desired by a customer.

Geographical Regions

Refers to specific areas or divisions of the world categorized by physical form, climate, political division, or economic condition.

Aggregation

The process of combining multiple pieces of data, inventory, or information into a single group or total, often for analysis or planning purposes.