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The process of attempting to determine all cost elements such as acquisition price, purchasing administration, follow-up, expediting, inspection and testing, rework, scrap, downtime, lost sales and customer returns is called:
a. total cost of ownership.
b. activity-based costing.
c. target pricing.
d. competitive bidding.
e. learning curve.

Respuesta :

Nyctalus

Answer: Total cost ownership  

Explanation: Total cost ownership is a kind of financial estimate that is used by the buyers and the owners to determine the total indirect and direct cost of a commodity produced or purchased.

It includes all the expenses that are incurred to make the product ready for use to the final customer. It involves a series of activities that is performed by the producer to ready the product.

Hence from the above we can conclude that the correct option is A.  

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