Question

First Among Best Solar Inc. announces thatthey will take back free of cost, all of their solar panels that are no longer useful. Till now, the cost of disposal was significant. This action reduces___________.

Answer 1

Answer:

Total Cost of ownership

Post ownership cost

Explanation:

Total cost of Ownership is the the sum of all the amount spent on an item,which includes the cost of purchase,servicing,repair, disposal etc. It is a management tool adopted by marketers and financial analyst to help determine the total costs associated with an item.

Post ownership cost is the total amount involved in disposal of an item,it also include the salvage costs of the item and more recently some other cost like environment costs, liability cost etc.

When the company takes back the panel it will reduce both of Total cost of ownership and Post ownership cost.