Life-cycle cost (LCC) can be defined as the cost to the government of a program over its full life, including costs for
research and development; testing; production; facilities; operations; maintenance; personnel; environmental compliance; and disposal
.
What is life cycle costing explain the components in LCC?
Life cycle cost (LCC) is an approach that assesses the total cost of an asset over its life cycle including
initial capital costs, maintenance costs, operating costs and the asset's residual value at the end of its life
.
Which of the following is a life cycle cost category?
The life cycle cost categories (
R&D, Investment, O&S, and Disposal
) are designed primarily for the use of DoD decision makers.
What is LCC equipment?
Life Cycle Costing
(LCC) adds a new dimension to purchasing construction equipment. With LCC, all major costs are established in advance. All of the owning and operating expenses throughout a machine's working life are considered, not just the initial purchase price.
What is a life cycle cost example?
For example,
think of a car. The car's price tag is only part of the car's overall life cycle cost
. You also need to consider expenses for car insurance, interest, gas, oil changes, and any other necessary maintenance to keep the car running. Not planning for these additional costs can set you back.
What is a life cycle cost quizlet?
Life Cycle Costing is
the sum of all costs incurred during its life span of an item or system
.
What is life-cycle cost accounting?
Life cycle costing is
the process of compiling all costs that the owner or producer of an asset will incur over its lifespan
. These costs include the initial investment, future additional investments, and annually recurring costs, minus any salvage value.
What are the costs included in project life cycle costing?
LCC also known as total life-cycle costing (TLCC) is the sum of all types of costs:
acquisition (ICC), O&M, and decomposition
incurred over the lifetime of a project discounted to the present [34].
What do you mean by LCC?
LCC stands for
Low-Cost Carrier
, referring to a kind of airline. These are typically described as cheaper, no-frills or budget airlines. The flight types that LCCs provide are generally short haul with the majority of the bookings being made online.
What is life-cycle cost in value engineering?
Life-cycle cost analysis is
the process during which the project team assesses the cost of a building, building material, or piece of equipment throughout its entire useful life
. It not only focuses on the more obvious acquisition and construction costs, but also on how much it will cost to operate and maintain.
What kind of information does a life cycle cost LCC analysis provide quizlet?
Life Cycle Cost Analysis (LCCA): This involves the
systematic collection of running cost data on completed buildings and linking this with the physical, qualitative and performance characteristics of those buildings
.
What is the purpose of a life cycle cost estimate Lcce?
The purpose of a Life Cycle Cost Estimate is to provide a financial accounting of all costs that will be associated and required to develop, produce, deploy, sustain and dispose of a project or program to allow the program manager and stakeholder to acquire the right amount of funding.
What cost estimating technique would be?
The four major analytical methods or cost estimation techniques used to develop cost estimates for acquisition programs are
Analogy, Parametric (Statistical), Engineering (Bottoms Up), and Actual Costs
.
What is life cycle accounting?
Lifecycle costing is
the maintenance of physical asset cost records over entire asset lives
. This means decisions around the acquisition, use or disposal of assets can be made in a way that achieves the optimum asset usage at the lowest possible cost to the entity.
How is LCC calculated?
LCC = C+PV Recurring – PV Residual Value
C is the 0-year construction cost. PV recurring is the present value of all recurring cost. PV residual value is the present value of residual value.
What is life cycle costing and stages of life cycle costing?
The first stage is life cost planning stage which includes planning LCC Analysis, Selecting and Developing LCC Model, applying LCC Model and finally recording and reviewing the LCC Results. The Second Stage is Life Cost Analysis Preparation Stage followed by third stage Implementation and Monitoring Life Cost Analysis.
