Total Cost of Ownership (TCO)

From the AssetPad glossary.
The comprehensive assessment of all costs associated with acquiring, operating, and maintaining an asset or system over its life cycle.

It includes not only the initial acquisition cost, but also costs associated with maintenance, repairs, operations, training, and eventual disposal of the asset.

TCO is a crucial concept in asset management, as it provides a more complete picture of an asset's cost, beyond its purchase price. It allows businesses to make informed decisions about purchasing and maintaining assets. TCO is especially important in the context of complex, high-value assets, where operating and maintenance costs may far exceed the initial purchase cost.