Generally, it is the net price plus other costs needed to purchase the item and get it to the point of use. These other costs can include: the item's purchasing costs (closing, research, accounting, commissions, legal fees), transportation, preparation and installation costs.
Typically they do not include training, system integration costs that might be considered operational costs.
- Standard definitions
- Paquette, Larry, (2004). The Sourcing Solution. AMAMOC, New York, 109-115