What can be a result of neglecting to properly assess the total cost of ownership?

Neglecting to properly assess the total cost of ownership can lead to underestimating project expenses, which often results in financial shortfalls. Total cost of ownership includes not only the initial purchase price of assets and services but also ongoing maintenance, operational costs, and any ancillary expenses that may arise over time. When these factors are not thoroughly evaluated, organizations may find themselves facing unexpected financial challenges, making it difficult to sustain the project or meet its goals.

Inadequate financial planning can disrupt project timelines, diminish resource allocation, and ultimately affect the quality of outcomes. This highlights the importance of comprehensive cost analysis in budgeting and financial management within grant-funded projects to ensure viability and success.