Life-Cycle Cost Management Consists of

question 100

Multiple Choice

Life-cycle cost management consists of

• A)actions taken to enable a product to be designed, developed, produced, marketed, distributed, operated, maintained, serviced, and disposed of in order to maximize profits.
• B)actions to extend the life of a product through design, development, production, and maintenance.
• C)actions that focus on minimizing the cost of developing, designing, producing, distributing, operating, servicing, and disposal of a product.
• D)actions taken to design, develop, test, market, distribute, maintain, service, and dispose of a product to maximize revenues.

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Definitions:

Inventory Value

The total cost or market value of all the goods and materials held by a company as part of its inventory at a specific point in time.

Service Level

A measure of the quality of a service provided, often defined by the percentage of customer demand met without delay.

Standard Deviation

A numerical indicator that calculates the degree of spread or deviation of a data set values from their average.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for or its value for parts.