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Topical Terminology > Total Cost Of Ownership (Tco)



4 Definitions

Total Cost of Ownership (TCO)

For Total Cost of Ownership (TCO) we have terms and definitions in 4 topics. The topics are Accounting, Auto Pricing, Business Intelligence and Supply Chain.



Total Cost Of Ownership (Tco) (Accounting)

is a model developed by Gartner Group to analyze the direct and indirect costs of owning and using hardware and software. Managers of enterprise systems use various versions of TCO to lower costs while increasing the benefits of information technology deployments. The TCO includes: original cost of the computer and softwarehardware and software upgradesmaintenancetechnical supportand training. Most estimates place the TCO at about 3 to 4 times the actual purchase cost of the PC.


Total Cost Of Ownership (Tco) (Auto Pricing)

Produced by IntelliChoice, Inc, Total Cost of Ownership is the total expected ownership cost to own and operate a vehicle for five years. The Total Cost of Ownership calculation includes depreciation, financing, insurance, state fees, fuel, maintenance and repairs. Vehicle trim configurations used to calculate ownership cost differ by class. Vehicles are priced using the most popular features equipped in two-thirds or more of the vehicles sold in each class. For instance, in recent model years, over 90% of all midsize vehicles sold were equipped with cruise control, while less than 50% of subcompact models sold had this feature. Therefore, cruise control is included in calculating ownership cost for the midsize class, but not for subcompacts.


Total Cost Of Ownership (Tco) (Business Intelligence)

The cost to own a product throughout its life.*


Total Cost Of Ownership (Tco) (Supply Chain)

Total cost of a computer asset throughout its life cycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. "Hard" costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance, contracts, support contracts, disposal costs, and license fees that may or may not be up-front or charged annually. These costs are considered "hard costs" because they are tangible and easily accounted for.




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