Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) a form of full cost accounting. It is a financial estimate designed to help consumers and enterprise managers assess direct and indirect costs commonly related to software or hardware. The total cost includes all financial consequences of owning a Configuration Item (CI) or asset. For example, in addition to the initial purchase price, the total cost includes maintenance, accommodation charges, potential opportunity costs, training costs, consumables required, internal and external support, and interest on capital.