Which term describes the total cost to the owner over the complete life cycle including disposal?

Which term describes the total cost to the owner over the complete life cycle including disposal?

• A. Life Cycle Cost Analysis
• B. Life Cycle Cost
• C. Life Cycle Cost Estimate
• D. Life Cycle Costing

Answer: (B)

Calculating ownership costs over an asset’s life from planning and construction through operation, maintenance, replacement, and disposal captures the total cost to the owner. The term for that complete amount is Life Cycle Cost. It embodies every cost incurred across the asset’s life, giving the true cost of owning and operating it rather than just the upfront price. This perspective is essential for comparing options, since a choice that looks cheaper initially can end up costing more over time when maintenance, energy, replacements, and disposal are included. A life cycle cost analysis is simply the process of evaluating these costs across alternatives; a life cycle cost estimate is a forecast of those future costs; life cycle costing is the broader practice of applying this approach. So the total cost you’re describing is Life Cycle Cost.

Calculating ownership costs over an asset’s life from planning and construction through operation, maintenance, replacement, and disposal captures the total cost to the owner. The term for that complete amount is Life Cycle Cost. It embodies every cost incurred across the asset’s life, giving the true cost of owning and operating it rather than just the upfront price. This perspective is essential for comparing options, since a choice that looks cheaper initially can end up costing more over time when maintenance, energy, replacements, and disposal are included. A life cycle cost analysis is simply the process of evaluating these costs across alternatives; a life cycle cost estimate is a forecast of those future costs; life cycle costing is the broader practice of applying this approach. So the total cost you’re describing is Life Cycle Cost.