Question 103 - CIS-HAM discussion

According to the ServiceNow Hardware Asset Management overview document1, the total cost of ownership (TCO) of an asset is the sum of all direct and indirect costs incurred throughout its lifecycle, from acquisition to disposal1.

The original costs are the costs involved in purchasing an asset and putting it into use, such as lease, delivery, and spare parts12.

Lease is the cost of renting or leasing an asset from a vendor or a third party for a fixed period of time12.Lease costs can vary depending on the terms and conditions of the contract, such as duration, frequency, and interest rate2.

Delivery is the cost of transporting or shipping an asset from the vendor or the warehouse to the end user or the location where it will be used12.Delivery costs can include fees, taxes, customs, and insurance2.

Spare parts are the cost of purchasing or stocking additional or replacement parts for an asset in case of failure, damage, or wear and tear12.Spare parts costs can depend on the availability, quality, and compatibility of the parts2.

The other options are not original costs, but rather ongoing or disposal costs.Maintenance is the cost of repairing, servicing, or upgrading an asset to keep it in good working condition12.Storage is the cost of storing an asset that is not in use or waiting for disposal12.

1: Hardware Asset Management overview - ServiceNow - Now Support

2: Asset Management - ServiceNow - Now Support