While conducting cost management activities, a manager came up with two competing alternatives: hiring a contractor to build one of the project’s deliverables, or buying the deliverable from an overseas supplier. She made the final decision based on the comparison between the two alternatives' acquisition, operating, and disposal costs. What technique did the manager use?
A
Life-cycle costing.
explanation
The cost management technique called life-cycle costing considers acquisition, operating, and disposal costs of the alternatives for a project in order to evaluate them.
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