TCO analysis should not be used on recurring material costs.

Question

Quizplus · Accepted Answer

TCO (Total Cost of Ownership) analysis should be used to evaluate the overall cost of a product or solution over its entire lifecycle, including recurring material costs. By considering factors such as maintenance, repairs, disposal, and replacement costs, TCO can provide a more accurate picture of the true cost of a product or solution, beyond just the upfront purchasing cost. Therefore, TCO analysis can be useful for evaluating any cost, including recurring material costs.

TCO Analysis Should Not Be Used on Recurring Material Costs