What does 'total cost of ownership' help determine?

Total cost of ownership (TCO) is a financial estimate intended to help individuals and organizations assess the direct and indirect costs associated with a product or system over its entire lifespan. This calculation includes not only the purchase price but also other costs such as maintenance, operation, and end-of-life disposal. By evaluating these factors, organizations can determine the overall economic value of an investment, making option B the most accurate.

Understanding TCO is crucial for decision-making, as it provides insight into the long-term financial implications of purchasing decisions, thereby enabling better budgeting and resource allocation. It helps businesses obtain a more comprehensive view of costs associated with ownership, which aids in evaluating the true value and return on investment of any given asset.