Question

For a majority of companies, the sourcing cost components that are most important are the following:

1-Acquisition costs, obsolescence costs, and regulatory costs.

2-Obsolescence costs, regulatory costs, risk costs.

3-Operating costs, personnel costs, and regulatory costs.

4-Acquisition costs, operating costs, and personnel costs.

5- Personnel costs, regulatory costs, and risk costs.

Answer 1

For a majority of companies, the sourcing cost components that are most important are the following -

Acquisition costs, operating costs and personnel costs.

Therefore, the correct answer is option 4th.

Note - Acquisition costs, operating costs and personnel costs are the primary costs of majority of companies, which evolve around, machines and labour, which are main elements of any business.

Obsolescence costs, regulatory costs, risks costs are kind of secondary and less important costs which is not directly related to business or cost of business.