Frequently Asked Questions(FAQ)

When should Total Cost of Ownership be taken into account?

Total Cost of Ownership can be considered with any purchase, but it is more important for major business or personal expenses, - for example, when purchasing a large piece of equipment for business or a car for personal use.

Where can you find the information you need to calculate Total Cost of Ownership?

Finding all the information necessary to calculate Total Cost of Ownership can take time, as you may have to examine various sources, depending on the asset in question. Consumers can use consumer resources, like Kelley Blue Book, while businesses can use industry benchmarking resources. 

Can the Total Cost of Ownership change over time?

Yes. Ongoing costs associated with owning an asset can increase or decrease over time. For example, the cost of labor to operate an asset can change over time. The maintenance costs can fluctuate as well.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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