Answer:Total cost of ownership (TCO)
Explanation:
Total cost of ownership (TCO) is the total cost of an asset(acquisition cost) including its cost of operation(maintenance e.t.c). It also helps buyers and owners determine the direct and indirect costs of a product or system.
Answer:
Total Cost of Ownership (TCO)
Explanation:
What is Total Cost of Ownership?
The purpose of total cost of ownership calculation is to estimate costs of systems in order to make well informed financial decisions.
Why Total Cost of Ownership Matters?
TCO provides a bigger picture of the situation by considering all the relevant factors. In TCO calculations all the associated costs are taken into consideration in order to get accurate financial figures which is the basis of taking decision.
How to Calculate Total Cost of Ownership?
The exact parameters of the TCO calculations may differ from firm to firm but most commonly used parameter are listed below.
Total Cost of Ownership = Initial Cost + Operation Cost + Production Cost + Maintenance Cost
