Total Cost Accounting
Total cost accounting (TCA) is a financial tool used to provide a more complete assessment of the true profitability of an entity by taking into account a wider range of direct and indirect costs and savings. It uses longer time horizons that reflect the full economic or commercial life of the project, incorporates the time value of money, reveals hidden costs, and considers uncertain or less quantifiable costs.
Total cost accounting (TCA) is a financial tool used to provide a more complete assessment of the true costs of a system, product or process by taking into account a wider range of direct and indirect costs and savings than used in more conventional accounting methods. It uses longer time horizons, such as the life cycle of a product or service, that reflect the full economic or commercial life of the project. TCA incorporates the time value of money, reveals hidden costs,and calculates costs often externalized by companies. These can include uncertain or less quantifiable costs such as the potential long-term impact on the biosphere.