The Total Cost of Ownership of a System Refers to ________

question 27

Multiple Choice

The total cost of ownership of a system refers to ________.

• A) all non-recurring costs associated with a system
• B) all costs associated with ongoing use and maintenance of a system
• C) the total cost of acquisition of a particular system
• D) the total cost of acquisition and all costs associated with use and maintenance of a system
• E) the recurring costs associated with a system

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Definitions:

Opportunity Cost

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.