Cars · RATIOXA GLOSSARY
Total cost of ownership (TCO)
All decision-relevant costs over the same period, typically depreciation, finance, energy, maintenance, tax and insurance.
Simple definition
All decision-relevant costs over the same period, typically depreciation, finance, energy, maintenance, tax and insurance.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
A low purchase price can be overtaken by high consumption and depreciation.