Question

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but it does not include any of the costs related to disposing of the item after it is no longer useful. T/F

Answer 1

Answer: The statement given is true since the total cost cost ownership is an estimate of cost of an commodity that considers all cost accompanying to the procurement and utilization of the item. Some of these cost are: Depreciation costs , Fuel costs , Insurance , Financing , Repairs , Downtime costs and etc. The total cost of ownership does not include disposing costs.