lifecycle costing

Lifecycle costing is a method used to evaluate the total costs associated with a product, project, or asset over its entire lifespan. This includes not just the initial purchase price, but also maintenance, operation, and disposal costs. By analyzing all these expenses, organizations can make informed decisions about investments, ensuring they understand the long-term financial implications. This approach helps identify the most cost-effective options, leading to better budgeting and resource allocation. Ultimately, lifecycle costing provides a comprehensive view of costs, promoting smarter economic choices.