Question

As a general rule of thumb, __________ of the total ownership costs of a system occur late in the life cycle, due to costs associated with operations and support

Answer 1

As a general rule of thumb, 50-60% of the total ownership costs of a system occur late in the life cycle, due to costs associated with operations and support.

Total Cost of Ownership (TCO) consists of the purchase price of a particular asset and the cost of ownership over the life of the asset. Looking at the total cost of ownership is one way to assess the long-term value of a business or personal acquisition.

Total Cost of Ownership costs (TCO) gives companies a competitive advantage by allowing them to better analyze employee costs. TCO considers direct and indirect costs to measure actual costs.

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