The official business definition of Cost Models in Procurement is a set of techniques used to determine the total cost of ownership of a product or service. This includes both the direct and indirect costs associated with the purchase, such as the cost of the product itself, the cost of installation, the cost of maintenance, and the cost of disposal. Cost models are used to compare different products and services, as well as to evaluate the cost-effectiveness of different procurement strategies. Cost models can also be used to identify areas where cost savings can be achieved. Cost models are essential tools for procurement professionals, as they provide the data needed to make informed decisions and ensure that the best value is obtained for the money spent.