The Total Cost of Ownership (TCO) Is an Estimate of the Cost

question 53

True/False

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.

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Definitions:

Comparability

A quality that enables users to identify similarities and differences between two or more items of financial information.

Financial Reports

Detailed statements that provide information on a company's financial performance and position over a specific period.

Stockholders' Equity

The interest left in a corporation's assets, after removing its obligations, which indicates the ownership share.

Assets

Resources owned by a company that have economic value and can be used to meet its financial obligations.