ITPEC FE Morning October 2020 Question 55
ITPEC FE Morning October 2020 — Question 55 of 80
TCO (Total Cost of Ownership) is the total amount of expenses across the full system lifecycle — from initial acquisition and installation through day-to-day operation to maintenance and eventual retirement.
It includes hardware, software, licensing, training, support, maintenance, electricity, and all other associated costs.
Why not others:
- (a) — only covers expenses at the time of installation (just one phase)
- (b) — only covers development costs (just one phase)
- (d) — only covers operation expenses for communications/networking (too narrow)
Key rule: TCO = everything from cradle to grave — if the definition restricts to one phase or one category, it's not TCO.
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