The concept of total cost of ownership highlights the fact that the initial purchase price is a small component of the total cost of some assets. Support, maintenance, training, insurance, security, energy consumption and disposal, all add to the total cost of ownership. The concept is widely used in procurement, though calculation of the total cost is not as straightforward as calculating the acquisition cost. All lifetime costs need to be identified and assumptions made about the scale of future costs, which are then incorporated in an overall cost model.« Back to Glossary Index
Total Cost of Ownership
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.