Total cost of ownership (TCO) is the purchase price of an asset plus the costs of operation. When choosing among alternatives in a purchasing decision, buyers should look not just at an item's ...
Total Cost of Ownership (TCO) is an analysis meant to uncover all the lifetime costs that follow from owning certain kinds of assets. As a result, TCO is sometimes called life cycle cost analysis . Asset ownership brings purchase costs, of course, but owning also brings costs due to installing, deploying, using, upgrading, and maintaining the same assets.
Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs .
Total cost of ownership (TCO) is an analysis that places a single value on the complete lifecycle of a capital purchase. This value includes every phase of ownership: acquisition, operation, and the softer costs of change management that flows down from acquisition such as documentation and training.
In the world of big business, the concept of Total Cost of Ownership (TCO) is important for both buyers and sellers alike. As a buyer, the initial cost of acquiring the product may be relatively small when compared to the annual cost for the maintenance and support of the product.
What Is 5-Year Cost to Own? The 5-Year Cost to Own is the total amount of vehicle-related costs you will likely have to cover during the first 5 years of owning a car.
Total cost of ownership (TCO) is an estimation of the expenses associated with purchasing, deploying, using and retiring a product or piece of equipment. TCO quantifies the cost of the purchase across the product's entire lifecycle .
Gartner defines total cost of ownership (TCO) a comprehensive assessment of information technology (IT) or other costs across enterprise boundaries over time. For IT, TCO includes hardware and software acquisition, management and support, communications, end-user expenses and the opportunity cost of downtime, training and other productivity losses.
True Cost to Own FAQs. What is total cost of ownership? Total cost of ownership is the purchase price of an asset plus its costs of operation, according to Investopedia.