APICS Certified Supply Chain Professional (CSCP) — Question 380

The total cost of ownership (TCO) measurement includes:

Answer options

• A. accounts payable
• B. tangible and intangible costs
• C. return on investment (ROI)
• D. net present value

Correct answer: B

Explanation

The correct answer is B because total cost of ownership encompasses both tangible and intangible costs associated with acquiring and using an asset. Options A, C, and D do not reflect the full scope of TCO, as accounts payable refers to liabilities, ROI measures profitability, and net present value evaluates investment returns.