Life Cycle Costing
Life Cycle Costing (LCC) is an approach used to assess the total cost of a product or project over its entire lifespan. This includes not just the initial purchase price, but also costs related to operation, maintenance, and eventual disposal. By considering all these factors, businesses and individuals can make more informed financial decisions, comparing options beyond just upfront costs. LCC helps identify long-term value and sustainability, enabling better budgeting and resource management. It's commonly used in fields like construction, manufacturing, and product development.
Additional Insights
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Life Cycle Costing (LCC) is a financial assessment method that evaluates the total cost of owning an asset over its entire life span. This includes not just the initial purchase price, but also operation, maintenance, repair, and disposal costs. By considering all these factors, LCC helps organizations make informed decisions about investments, ensuring they understand the long-term financial implications rather than just focusing on upfront expenses. This approach is useful in various fields, including engineering, construction, and manufacturing, where assets like machines, buildings, and vehicles are involved.