Data for a Factory -
Total Cost of Ownership Is a Management Accounting Technique

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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Total cost of ownership is a management accounting technique with the following important supply chain implications:

A) Recognition that the cost of acquiring goods and services includes more than just quoted piece price.
B) Locked in cost issues may affect suppliers.
C) Sharing of cost and output data enables benefits of partnership sourcing.
D) Synchronisation of production plans.