Total cost of ownership
What Total cost of ownership means in Business GCSE, as defined for AQA.
Definitions of Total cost of ownership
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Reference: AQA
The total cost of buying and using the input, not just the invoice price, including transport, storage, waste and administration.
A consideration in procurement that looks beyond the headline price, balancing price against quality, reliability and delivery.
Topics that use Total cost of ownership
- The role of procurement (AQA GCSE)
Related terms
- Analysing supplier choice in context
- Best value
- Brand reputation
- Buffer stock
- Consequences for operations and costs
- Contextual judgement
- Customer satisfaction
- Customer satisfaction and reputation
Using Total cost of ownership in the exam
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