A procurement manager is sourcing some high-value equipment for their organisation. What are the elements comprising whole-life costing that they need to consider?
A.
Acquisition, purchase, usage, and end-of-life costs
B.
Acquisition, purchase, maintenance, and indirect costs
C.
Product pricing, contract admin, and staffing costs
Whole-life costing includes all costs from acquisition to disposal, ensuring comprehensive financial planning. Essential components include:
Acquisition and purchase costs: Initial costs incurred to procure the equipment.
Usage costs: Operational expenses, including energy and consumables.
End-of-life costs: Disposal, recycling, or decommissioning expenses.
Whole-life asset management aims to minimize these costs over an asset's lifecycle, ensuring value and performance.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit