Total Cost Of Ownership - TCO

Total Cost Of Ownership - TCO

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 short-term price, which is its purchase price, but also at its long-term price, which is its total cost of ownership. The item with the lower total cost of ownership will be the better value in the long run.

For example, the total cost of ownership of a car is not just the purchase price, but also the expenses incurred through its use, such as repairs, insurance and fuel. A used car that appears to be a great bargain might actually have a total cost of ownership that is higher than that of a new car, if the used car requires numerous repairs while the new car has a three-year warranty.

Investment dictionary. . 2012.

Look at other dictionaries:

  • total cost of ownership — /ˌtəυt(ə)l kɒst əv əυnəʃɪp/ noun a method of calculating the costs of buying and using a product or service that, in addition to the purchase cost of the item, takes into account related costs such as ordering, delivery, subsequent usage and… …   Marketing dictionary in english

  • Total Cost of Ownership — Summe aller für die Anschaffung eines Vermögensgegenstandes (z.B. eines Computersystems), seine Nutzung und ggf. Entsorgung anfallenden Kosten.T.C.o.O. sind ein Gestaltungsaspekt während der Phase der Produktentwicklung; mit ihnen wird versucht,… …   Lexikon der Economics

  • Total return swap — Total return swap, or TRS (especially in Europe), or total rate of return swap, or TRORS, is a financial contract which transfers both the credit risk and market risk of an underlying asset. Contract definition Let us assume that one bank (bank… …   Wikipedia

  • Total S.A. — Total S.A. Type Société Anonyme Traded as Euronext: FP, NYSE: …   Wikipedia

  • Ownership equity — In accounting terms, after all liabilities are paid, ownership equity is the remaining interest in assets. If valuations placed on assets do not exceed liabilities, negative equity exists. Shareholders equity (or stockholders equity, shareholders …   Wikipedia

  • Life Cycle Cost — Life Cycle Costing (auf deutsch: Kosten innerhalb eines Lebenszyklus) ist eine Kostenmanagement Methode, die die Entwicklung eines Produktes von der Produktidee bis zur Rücknahme vom Markt betrachtet (Produktlebenszyklus), also von der Wiege bis… …   Deutsch Wikipedia

  • Life cycle cost analysis — can refer to: * Life cycle assessment refers to the investigation and valuation of the environmental impacts of a given product or service caused or necessitated by its existence. * Whole life cost refers to the total cost of ownership over the… …   Wikipedia

  • Customer Cost — refers not only to the price of a product, but also encompasses the purchase costs as well as use costs and post use costs. Purchase costs mainly consist of the cost of searching for a product, gathering information about it and obtaining it. The …   Wikipedia

  • Mutual Ownership Defense Housing Division — The Mutual Ownership Defense Housing Division of the Federal Works Agency part of the United States government, operating from about 1940 to 1942 under the leadership of Colonel Lawrence Westbrook, was an attempt by the United States Government,… …   Wikipedia

  • Concentration of media ownership — Journalism News · Writing style Ethics · Objectivity Values · …   Wikipedia

  • Employee ownership — occurs when a corporation is owned in whole or in part by its employees. Employees are usually given a share of the corporation after a certain length of employment or they can buy shares at any time. A corporation owned entirely by its employees …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.