The total cost of all the resources used in supplying a service, including the direct costs, a share of indirect costs and any marketing, selling and distribution, etc costs All cash and non-cash costs, for example the cost of capital and where appropriate, planned renewal costs, are included Full costs are required to calculate the Total Cost of Ownership
The total cost of all the resources used in supplying a service i e the sum of the direct costs of producing the output, a proportional share of overhead costs and any selling and distribution expenses Both cash costs and notional (non-cash) costs should be included, including the cost of capital See also Total Cost of Ownership