Life-Cycle Costing


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Life-Cycle Costing

An estimate of all expenses a company incurs and derives from a product. Life cycle costing includes all expenses from research and development, marketing, customer services and so forth. It is calculated from the beginning of a product's research to its estimated date of withdrawal from the market. Life cycle costing helps a company determine whether or not a product is going to be profitable.
References in periodicals archive ?
SSC encourages municipal officials and other stakeholders to consider this report when evaluating the life-cycle costing of water infrastructure and making sustainable piping decisions.
In a 1979 decision (B-192488), GAO reiterated, "We have consistently upheld life-cycle costing, stating that it is logical to consider total anticipated costs, rather than merely purchase price." There have been numerous dismissed and/or denied protests, and a few sustained, involving LCC over the years.
Life-cycle costing is the profiling of costs over the life of a product, including the pre-production stage.
A key component of up-front planning is life-cycle costing. A life-cycle cost management program identifies a common set of ground rules and assumptions for life-cycle cost estimation; ensures that best-practice methods, tools, and models are used for life-cycle cost analysis; tracks the estimated life-cycle cost throughout the project; and, most importantly, integrates life-cycle cost considerations into the design and development process.
Coverage includes life-cycle costing economics and fundamentals; models and cost estimation methods; reliability, quality, safety, and manufacturing costing; maintenance, maintainability, usability, and warranty costing; life-cycle costing of computer, transportation, civil engineering and energy systems; and introductory aspects of engineering reliability and maintainability.
(2003), Life-cycle costing, John Wiley a sons, USA 2003, ISBN 978-0-4713-5885-5