The term Total Cost of Ownership (TCO) refers to a business analysis method that considers all costs associated with a product, service, or investment throughout its entire life cycle. Its purpose is to evaluate not only the purchase price but also all direct and indirect costs — including acquisition, operation, maintenance, and disposal. TCO provides a holistic view of cost, enabling companies to make informed decisions about profitability and long-term value. By highlighting hidden costs, it serves as a foundation for sound investment strategies and supplier comparisons.
