What’s Below the Iceberg: Determining the True Cost of Ownership of Test and Measurement Equipment

By Duane Lowenstein

Understanding the true cost of ownership of an asset is always hard, for Test and Measurement equipment, even harder. This difficulty is due to variables like calibration, technological life span, depreciation and a number of others. Determining what variables are needed and how to financially organize them is similar to filling out your taxes. Like your taxes, all the numbers are probably known, but where to find them and how to plug them in is the difficult part. With new tax software now most people can fill out their own tax returns less painfully. This paper will take a similar approach for understanding the true “cost of ownership” of your Test and Measurement equipment. It will develop a model that will allow a repeatable approach in understanding the Capital and Operational costs over an asset’s total life from purchase to disposal. It will break down the different elements that make up the costs including acquisition, maintenance, support and others, ultimately helping you understand how different factors sway the sensitivity of the total cost to your bottom line. Read Full Article (PDF)

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