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.
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
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Three (3) key concepts you consider most important in the total cost of ownership
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The three key concepts of Total cost ownership
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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
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Business negotiation experiences
Running head: COST MANAGEMENT
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Cost Management
Institutional Affiliation
Date
COST MANAGEMENT
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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...
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