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Jemshah
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Asked: 2023-01-07T15:01:09+00:00 In:

Outline five elements that constitute total cost of ownerships as used in evaluating the bids for capital supplies (10 marks)July 2020

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Outline five elements that constitute total cost of ownerships as used in evaluating the bids for capital supplies (10 marks)July 2020

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    1. Initial purchase price: This is the price of the capital supply at the time of purchase.
    2. Installation and setup costs: These are the costs associated with installing and setting up the capital supply, including labor, materials, and any specialized equipment needed.
    3. Maintenance and repair costs: These are the costs associated with maintaining and repairing the capital supply over its lifespan, including labor, materials, and any specialized equipment needed.
    4. Operating costs: These are the ongoing costs associated with using the capital supply, such as energy and consumables.
    5. Disposal or decommissioning costs: These are the costs associated with disposing of or decommissioning the capital supply at the end of its lifespan, including labor, materials, and any specialized equipment needed.
    6. Financing costs: These are the costs associated with financing the purchase of the capital supply, such as interest on loans or leases.
    7. Opportunity costs: These are the potential costs associated with not purchasing the capital supply, such as lost revenue or productivity.
    8. Risk and uncertainty: These are the potential costs associated with risks and uncertainties, such as changes in market conditions or technological obsolescence.
    9. Non-financial costs: These are the intangible costs associated with the capital supply, such as the impact on the environment or the organization’s reputation.
    10. Legal and regulatory costs: These are the costs associated with complying with legal and regulatory requirements related to the capital supply, such as environmental regulations or safety standards.
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