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Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include which of the following?

a) Energy Usage
b) Purchase Price
c) Product Liability Costs
d) Customer Dissatisfaction Costs
e) Warranty Costs

1 Answer

4 votes

Answer:

a) Energy Usage

Step-by-step explanation:

Total cost of ownership (TCO) can be defined as the summation of the purchase price (P) and operating costs (O) of an asset over the asset's lifespan.

Mathematically, it is given by the expression;

Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include an energy usage.

Energy refers to the amount or quantity of power which is being consumed by an individual, group of people or organization over a specific period of time. As the consumers continue to use energy, they're being charged or made to pay a utility fee regularly for their amount of consumption, which is usually calculated hourly (kilowatts per hour or kwh).

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