2. Breakdown and definition of technical costs
Costs can be considered in terms of whether or not they can be allocated directly to a product or activity. A distinction is made between :
direct costs: in most cases, these are costs that disappear with production (labor, materials, tools, machine use, etc.);
indirect costs: these represent the expenses required for production, but which cannot be allocated to a specific product (insurance, management, etc.).
Allocating indirect costs is a delicate operation. It essentially depends on strategic choices made by the company's management. As a result, we won't be talking about these induced costs, known as structural costs.
In this article, only the technical cost of ownership is taken into consideration, defined...
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Breakdown and definition of technical costs
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