Question 1

TCO analysis of equipment purchases usually does little to help reduce the expenditures for maintenance and parts over the lives of the investments.

Accepted Answer

A) True 
 B)False

Question 2

Total cost of ownership (TCO)is a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service.

Accepted Answer

A) True 
 B)False

Question 3

Supply managers must shift their focus in procuring materials,services and equipment from price to total cost.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a post-ownership cost?

Accepted Answer

A)  Environmental Costs 
B)  Warranty Costs 
C)  Inventory 
D)  Product Liability Costs 
E)  Customer Dissatisfaction Costs 
A)  Environmental Costs 
B)  Warranty Costs 
C)  Inventory 
D)  Product Liability Costs 
E)  Customer Dissatisfaction Costs

Question 5

Accurate estimation of total costs does not require a cross-functional approach.It only requires that supply management carefully perform extensive time and motion studies to estimate accurate costs.

Accepted Answer

A) True 
 B)False

Question 6

TCO is also applicable in one's private life enabling better decision-making.

Accepted Answer

A) True 
 B)False

Question 7

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

Accepted Answer

A)  Structure of foreign and domestic tariffs/duties/taxes 
B)  Foreign political/economic stability 
C)  Foreign exchange risk 
D)  Foreign language syntax 
E)  Language/communication requirements 
A)  Structure of foreign and domestic tariffs/duties/taxes 
B)  Foreign political/economic stability 
C)  Foreign exchange risk 
D)  Foreign language syntax 
E)  Language/communication requirements

Question 8

Activity-based costing (ABC)is a technique for accumulating cost for a given cost object that represents the total and true economic resources required or consumed by the object.

Accepted Answer

A) True 
 B)False

Question 9

An easy problem to resolve in TCO analysis of manufacturers is the accurate allocation of manufacturing overhead to products being purchased.

Accepted Answer

A) True 
 B)False

Question 10

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

Accepted Answer

A)  Volatility of end-customer demand 
B)  Financial accounting reports 
C)  Inventory carrying costs 
D)  Inventory risk 
E)  Quality costs 
A)  Volatility of end-customer demand 
B)  Financial accounting reports 
C)  Inventory carrying costs 
D)  Inventory risk 
E)  Quality costs

TCO analysis of equipment purchases usually does little to help reduce the expenditures for maintenance and parts over the lives of the investments.

Total cost of ownership (TCO)is a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service.

Supply managers must shift their focus in procuring materials,services and equipment from price to total cost.

Which of the following is not a post-ownership cost?

Accurate estimation of total costs does not require a cross-functional approach.It only requires that supply management carefully perform extensive time and motion studies to estimate accurate costs.

TCO is also applicable in one's private life enabling better decision-making.

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

Activity-based costing (ABC)is a technique for accumulating cost for a given cost object that represents the total and true economic resources required or consumed by the object.

An easy problem to resolve in TCO analysis of manufacturers is the accurate allocation of manufacturing overhead to products being purchased.

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

The Progression to Professional Supply Management

Organizational Issues

Supply Management: an Organization Spanning Activity

A Portfolio of Relationships

New Product Development

Purchasing Descriptions and Specifications

Managing for Quality

The Procurement of Equipment

Purchasing Services

Outsourcing

Sourcing

Global Supply Management

Price and Cost Analysis

Methods of Compensation

Negotiation

Contract Formation and Legal Issues

Contact and Relationship Management

Ethics and Social Responsibilities

Production and Inventory Control

Demand Management and Logistics

Implementing Value Network Management

Filters

Exam 13: Total Cost of Ownership

TCO analysis of equipment purchases usually does little to help reduce the expenditures for maintenance and parts over the lives of the investments.

Total cost of ownership (TCO)is a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service.

Supply managers must shift their focus in procuring materials,services and equipment from price to total cost.

Which of the following is not a post-ownership cost?

Accurate estimation of total costs does not require a cross-functional approach.It only requires that supply management carefully perform extensive time and motion studies to estimate accurate costs.

TCO is also applicable in one's private life enabling better decision-making.

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

Activity-based costing (ABC)is a technique for accumulating cost for a given cost object that represents the total and true economic resources required or consumed by the object.

An easy problem to resolve in TCO analysis of manufacturers is the accurate allocation of manufacturing overhead to products being purchased.

TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

The Progression to Professional Supply Management

Organizational Issues

Supply Management: an Organization Spanning Activity

A Portfolio of Relationships

New Product Development

Purchasing Descriptions and Specifications

Managing for Quality

The Procurement of Equipment

Purchasing Services

Outsourcing

Sourcing

Global Supply Management

Price and Cost Analysis

Methods of Compensation

Negotiation

Contract Formation and Legal Issues

Contact and Relationship Management

Ethics and Social Responsibilities

Production and Inventory Control

Demand Management and Logistics

Implementing Value Network Management

Filters