Total Cost of Ownership As A Decision Making Technique
Santhosh T., Assistant Professor, PSG College of Arts and Science, Coimbatore (Tamil Nadu), India.
Manuscript received on September 06, 2018. | Revised Manuscript received on September 11, 2018. | Manuscript published on September 15, 2018. | PP: 10-13 | Volume-3 Issue-6, September 2018. | Retrieval Number: F0210093618
Open Access | Ethics and Policies | Cite
© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In business, there is a concept called total cost of ownership or TCO for short. It’s different than the simple purchase price of an item. For example, imagine that you are the business owner of a flower company. You are thinking of purchasing a brand new flower delivery vehicle complete with refrigeration so the flowers don’t wilt during delivery. Instead of relying on just the purchase price when considering whether to purchase this truck or not, you use the total cost of ownership. This cost includes not just the purchase price, but also all related ownership costs such as insurance, registration, maintenance, and repairs.
Keywords: Total Cost of Ownership, Uses, Cost to Price, Different Cost, Calculation.