Certified Automotive Fleet Manager (CAFM) Exam

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A fleet manager is analyzing the Total Cost of Ownership (TCO) for a class of light-duty trucks to determine the optimal replacement point. Which of the following components is considered an operating cost in the TCO calculation?

Fuel and preventative maintenance Initial purchase price and taxes Residual value at the end of lifecycle Financing interest and loan payments

Correct Answer:

Fuel and preventative maintenance

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