Which costs in the following list are categorised as operation costs in the total cost of ownership model? Select TWO that apply.

Which costs in the following list are categorised as operation costs in the total cost of ownership model? Select TWO that apply.
A . Decommissioning costs
B . Costs of any person who operates the equipment
C . Installation and configuration costs
D . Delivery costs
E . Costs of consumables

View Answer

Answer: B, E

Explanation:

Costs of operating an asset can widely vary. The following table is an example from Guide to Total Cost of Ownership, New Zealand Government:

Reference: CIPS study guide page 163-164

LO 3, AC 3.1