What Factors Contribute to the Total Cost of Ownership?

What are some key elements that may be included in the total cost of ownership?

a. Piece Price

b. Employee morale entertainment

c. Funding $'s for supplier gifts

d. Tooling Cost

e. a and d

Answer:

The total cost of ownership includes costs such as Piece Price and Tooling Cost.

The total cost of ownership may include several elements based on the nature of the owned item or service. In this case, the items that are actually included are Piece Price and Tooling Cost. Piece Price refers to the cost of buying or producing each unit of the item, which can be illustrated with Cost of technology examples where each unit costs a certain sum. In Example B, if workers are considered, their cost would be $55 each.

On the other hand, Tooling Cost is an upfront cost incurred to create durable tools that aid in the production process, similar to acquiring machines at $80 in Example B.

The other options like 'Employee morale entertainment' and 'Funding $'s for supplier gifts' are generally considered part of the operational cost and not directly tied to the total cost of ownership.

The total cost of ownership can include both the piece price and tooling cost. The piece price refers to the cost of purchasing individual items or components, while the tooling cost refers to the expenses associated with creating or acquiring tools and equipment needed for production.

Employee morale entertainment and funding for supplier gifts are not typically considered as part of the total cost of ownership. These expenses are not directly related to the production or acquisition of the product.