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Life-cycle cost analysis. Life-cycle cost analysis (LCCA) is an economic analysis tool to determine the most cost-effective option to purchase, run, sustain or dispose of an object or process. The method is popular in helping managers determine economic sustainability by figuring out the life cycle of a product or process.
Whole-life cost is the total cost of ownership over the life of an asset. [1] [clarification needed] The concept is also known as life-cycle cost (LCC) or lifetime cost, [2] and is commonly referred to as "cradle to grave" or "womb to tomb" costs. Costs considered include the financial cost which is relatively simple to calculate and also the ...
Target costing is an approach to determine a product's life-cycle cost which should be sufficient to develop specified functionality and quality, while ensuring its desired profit. It involves setting a target cost by subtracting a desired profit margin from a competitive market price. [1] A target cost is the maximum amount of cost that can be ...
Within an accepted process and measures framework, total program cost over the life of the program, including the life of facility(ies) that house the program, provides a rational decisionmaking environment for the accountable managers.
Life-cycle assessment. Illustration of the general phases of a life cycle assessment, as described by ISO 14040. Life cycle assessment ( LCA ), also known as life cycle analysis, is a methodology for assessing environmental impacts associated with all the stages of the life cycle of a commercial product, process, or service.
Examples show that operation and maintenance costs often mean that the cheaper model costs more per hour of use than a more expensive, but longer lasting, model. (MLF) Descriptors: Educational Equipment , Elementary Secondary Education , Equipment Evaluation , Higher Education , Life Cycle Costing , School Maintenance
Discusses annual cost and present worth methods as two basic ways of calculating life-cycle cost to make purchasing decisions when replacing training systems. A training cost analysis worksheet to aid in asking comprehensive questions about training costs as they currently exist is included.
Unfortunately, decision-makers rarely use life-cycle cost analysis to account for those reduced operating expenses or other kinds of benefits such as enhanced labor productivity and well-being. This first-cost bias also prevails in the federal sector, even though managers are required to conduct life-cycle costing.