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:
- Open Source knowhow
- Materials at fundamental cost
- Labor
- Zero margin operating costs are attained by Open Sector services such as certification, design, documentation, and engineering
Hidden cost:
- markup or cost plus
- multiple agent - How many subs in their subs were hired?
- Proprietary design
- protectionism
- marketing
- HR
- legal
- subcontractor markup
- profit
- financing cost
- labor
- subcontracted labor
- outsourcing
- resale and retail as opposed to wholesale or commodity
- Taxes
- Licenses and certifications
- Design
- Emgineering
- Documemtation