The purchase cost of product is included into cost of maintenance and is subtracted from discounted salvage value to calculate __________?

Correct answer: C. life cycle cost

  • A. purchase cycle cost
  • B. cost of responsiveness
  • C. life cycle cost
  • D. assurance cost

Explanation

Life cycle cost is calculated by adding the purchase and maintenance costs and subtracting the discounted salvage value recovered at the end. The other terms are not the standard name for this total-cost measure.

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