Fundamental Cost vs Markup Cost

From Open Source Ecology
Jump to: navigation, search

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