Fundamental Cost vs Markup Cost

Hidden cost is called as such because a lot of the costs involved are not transparent. Markup is only one category of added cost

Fundamental cost:

1. Open Source knowhow
2. Materials at fundamental cost
3. Labor
4. Zero margin operating costs are attained by Open Sector services such as certification, design, documentation, and engineering

Hidden cost:

1. markup or cost plus
2. multiple agent - How many subs in their subs were hired?
3. Proprietary design
4. protectionism
5. marketing
6. HR
7. legal
8. subcontractor markup
9. profit
10. financing cost
11. labor
12. subcontracted labor
13. outsourcing
14. resale and retail as opposed to wholesale or commodity
15. Taxes
16. Licenses and certifications
17. Design
18. Emgineering
19. Documemtation