Key Concepts of Total Cost of Ownership Cost Management Discussion Question

User Generated

yeubqrf1975

Business Finance

Description

Cost Management. Please respond to the following:

  • Describe three (3) key concepts you consider most important in the total cost of ownership.
  • Describe how price discounting would influence the understanding of purchasing as a profit center.
  • Explain what and how a small business can apply and benefit from the strategic cost management. Give at least two (2) examples.
  • Describe one (1) of your business negotiation experiences. Explain how your negotiation impacted directly and/or indirectly to the profit and/or the expense of your company or organization. If you do not have business negotiation experience, describe one (1) business negotiation experience you observed or learned about.

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Explanation & Answer

Attached.

Title: Cost Management
Thesis Statement: the total cost of ownership (TCO) incorporates the purchasing price plus a
bunch of other costs incurred during the useful life of the asset.
Topic


Three (3) key concepts you consider most important in the total cost of ownership



The three key concepts of Total cost ownership



How price discounting would influence the understanding of purchasing as a profit center



Ways in which small businesses can apply and benefit from strategic cost management



Business negotiation experiences


Running head: COST MANAGEMENT

1

Cost Management
Institutional Affiliation
Date

COST MANAGEMENT


2

Three (3) key concepts you consider most important in the total cost of ownership
According to Caniato, Ronchi, Luzzini, & Brivio, (2015), the total cost of ownership

(TCO) incorporates the purchasing price plus a bunch of other costs incurred during the useful
life of the asset. TCO can be categorized as the pre-acquisition out, acquisition cost, operating
cost, downtime costs, maintainable cost, and the end of the life cycle cost. The pre-acquisition...


Anonymous
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