The total cost to the owner over the project’s complete life cycle, including disposal, is called what?

The total cost to the owner over the project’s complete life cycle, including disposal, is called what?

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

Answer: (B)

Life cycle cost is the total cost to the owner over the project’s entire life, from initial investment through operation, maintenance, and disposal. This concept looks beyond the upfront price to include all future costs, so decisions can be made based on which option delivers the lowest overall cost over time. The other terms refer to parts of that process or to related ideas: life cycle cost analysis is the method of evaluating and comparing those costs; a life cycle cost estimate is a forecast of what the costs will be; life cycle costing is the broader practice of applying life cycle thinking to cost management. But the term that names the total cost itself is life cycle cost.

Life cycle cost is the total cost to the owner over the project’s entire life, from initial investment through operation, maintenance, and disposal. This concept looks beyond the upfront price to include all future costs, so decisions can be made based on which option delivers the lowest overall cost over time.

The other terms refer to parts of that process or to related ideas: life cycle cost analysis is the method of evaluating and comparing those costs; a life cycle cost estimate is a forecast of what the costs will be; life cycle costing is the broader practice of applying life cycle thinking to cost management. But the term that names the total cost itself is life cycle cost.