Life Cycle Cost Notes: Definitions & Explanations PDF | Download eBooks
Study Life Cycle Cost lecture notes PDF with project management definitions and explanation to study What is Life Cycle Cost?. Study life cycle cost explanation with project management terms to review project management course for online MBA programs.
Life Cycle Cost Definition:
Life-cycle cost is the total cost to the organization for the ownership and acquisition of the product over its full life.
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Life Cycle Cost Notes:
Traditionally, the cost of a product was divided into different parts, based on the stages of the product's life. For example, the cost of the product in the design phase could be estimated or calculated and decision regarding the product was made based on that calculation. The new concept of costing is life cycle costing. Life cycle costing involves calculating the costs of the product throughout its life for decision making. The costs associated with the ownership of the product by an organization throughout the product life cycle are collectively called life cycle cost. Life cycle costs include development cost, production cost, construction cost, maintenance cost, operations cost, phase out cost etc.
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