TCO

Total Cost of Ownership

The TCO is the most important accounting factor when assessing the value to the business of a prospective purchase.

This is because it represents the complete fiscal breakdown of the costs for the item throughout its full lifecycle. These costs include all capital and operating expenses incurred to purchase, install, operate, maintain, service, monitor and ultimately dispose of the item over its lifetime.

Calculation of the TCO enables a business review and analysis of the cost and impact on the business.