Identify the three components of Total Cost. What component do you believe is most important? Why?
Total cost consists of three different things. The first is Acquisition costs, which is all the costs like purchasing, planning, taxes, and finances. These are the costs that a company makes to get things. The next type of cost in total cost is ownership cost. This includes supply chain costs, risk costs, or any non value added costs. THe last cost is the post ownership costs, which are warranty costs, product liability costs, environmental costs, and customer dissatisfaction costs. I think that acquisition costs are the most important because they are what makes the company have the ability to run and make money. If the company never makes any acquisition costs they will not ever be able to start a company at all.