Case Study Purchase Price Just One Component Of Cost
Materiel Acquisition Management
MGT 5084
Case Study – Purchase Price: Just One Component Of Cost
Total cost of ownership is related to procurement and use of a product. This cost is comprised of acquisition cost, ownership cost, and post ownership cost. The acquisition cost entails the price paid for the direct and indirect materials, products and services. Planning costs include the cost of developing requirements and specifications. Quality costs usually lower the design phase of future ownership and post ownership for purchasers and customers. More so, ownership costs entail the initial purchase with the ongoing use of a purchase product or material, which can be qualitative or quantitative. However, post ownership costs, shows the salvage value and the disposable costs which estimate the costs of capital purchased. The cost of ownership analysis for Toyota and General Motors catches my attention. Toyota cars have withstood the test of time where the acquisition cost seems to be reasonable. The purchase price of General Motors seems slightly inexpensive compare to Toyota cars. Most customers negotiate, and receive discount based on specification of cars. The cost to incur GM seems higher than Toyota, yet the latter have performing price and it cost analysis outweighs the former. Statistically, Toyota has been known for lower the initial cost of future ownership and post ownership cost for the buyers. This is because Toyota second hand value is better for buyers than GM. There would be a reduce purchase price for GM due to less domestic taxes while the taxes for obtaining Toyota from abroad would cost more. This is because of international tax. Nevertheless, the financial costs of acquiring Toyota have been more beneficial than cost. In the fact that it cars are durable, dependable and efficient. The ownership costs of Toyota maintenance, repair, and the finance of the qualitative cost are very economical. Toyota is so dependable that its customers are
MGT 5084
Case Study – Purchase Price: Just One Component Of Cost
Total cost of ownership is related to procurement and use of a product. This cost is comprised of acquisition cost, ownership cost, and post ownership cost. The acquisition cost entails the price paid for the direct and indirect materials, products and services. Planning costs include the cost of developing requirements and specifications. Quality costs usually lower the design phase of future ownership and post ownership for purchasers and customers. More so, ownership costs entail the initial purchase with the ongoing use of a purchase product or material, which can be qualitative or quantitative. However, post ownership costs, shows the salvage value and the disposable costs which estimate the costs of capital purchased. The cost of ownership analysis for Toyota and General Motors catches my attention. Toyota cars have withstood the test of time where the acquisition cost seems to be reasonable. The purchase price of General Motors seems slightly inexpensive compare to Toyota cars. Most customers negotiate, and receive discount based on specification of cars. The cost to incur GM seems higher than Toyota, yet the latter have performing price and it cost analysis outweighs the former. Statistically, Toyota has been known for lower the initial cost of future ownership and post ownership cost for the buyers. This is because Toyota second hand value is better for buyers than GM. There would be a reduce purchase price for GM due to less domestic taxes while the taxes for obtaining Toyota from abroad would cost more. This is because of international tax. Nevertheless, the financial costs of acquiring Toyota have been more beneficial than cost. In the fact that it cars are durable, dependable and efficient. The ownership costs of Toyota maintenance, repair, and the finance of the qualitative cost are very economical. Toyota is so dependable that its customers are