The estimated costs of a proposed system usually are considered the , which includes ongoing support and maintenance costs, as well as acquisition costs.

Total Cost of Ownership (TCO)

Explanation:

What is Total Cost of Ownership?

The purpose of total cost of ownership calculation is to estimate costs of systems in order to make well informed financial decisions.

Why Total Cost of Ownership Matters?

TCO provides a bigger picture of the situation by considering all the relevant factors. In TCO calculations all the associated costs are taken into consideration in order to get accurate financial figures which is the basis of taking decision.  

How to Calculate Total Cost of Ownership?

The exact parameters of the TCO calculations may differ from firm to firm but most commonly used parameter are listed below.

Total Cost of Ownership = Initial Cost + Operation Cost + Production Cost + Maintenance Cost

answer; niosh, the national institute for occupational safety and health;