Question

An understanding of total-life-cycle costs can lead to:___________.

A. additional costs during the manufacturing cycle.
B. less need for the evaluation of opportunity costs.
C. cost effective product designs that are easier to service.
D. mutually beneficial relationships between buyers and sellers.

Answer 1

(C). Cost effective product designs that are easier to service.

Step-by-step explanation:

Total life cycle costs are the entire costs that are incurred along the value chain of a product. It includes cost of sourcing for raw materials, costs of production, transportation or delivery costs and after sale service costs.

When an organization understands all these costs, then it is easier to design cost effective products that offer value to its customers and yield profit for the organization.