Question

What does total "cost of ownership" refer to in terms of information systems and what is its significance in a managerial context?

Answer 1

Total cost of ownership helps the owners and the buyers to know the overall cost of the project including both direct andindirect costs. It is widely used in different industries like manufacturing and finance. In information system TCO refers to all the costs that are to be invested to form the system like input costs, maintenance and programming. In managerial context TCO helps in estimations and forecasting of costs. These costs include all the costs right from prodcution which are required to manage a company.