Question

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What type of cost is the oil needed to maintain a large piece of equipment Opportunity...

What type of cost is the oil needed to maintain a large piece of equipment

Opportunity cost

Indirect cost

Fixed Cost

Variable Cost

Life-cycle cost (LCC) analysis is being used to help determine weather the purchase of a high-performance heating ventilation and air conditioning system is cost- effective. What would this analysis not consider?

  1. Cash flows made time-equivalent by converting them to present values

  2. Comparision with other measures of economic evaluations

  3. Appropriate risk and uncertainty assessments

  4. Customer satisfaction survey responses

Solutions

Expert Solution

1. Fixed cost

Because company has to run the equipment to produce the products and oil is needed to run it. Hence the cost will persist throughout the production. Therefore it is a fixed cost.

2. Life cycle cost analysis will not consider the customer satisfaction survey responses. Remaining options are part of the analysis

jeff jeffy answered 2 years ago
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