The maintenance of physical asset records over the entire asset life, so that decisions concerning the acquisition, use or disposal of the asset can be made in a way that achieves the optimum assets usage at the lowest possible cost to the business. The term may be applied to the profiling of cost over a product's life, including the pre-production stage and to company and industry life cycles.
An economic assessment of an item, system, or facility and competing design alternatives considering all significant costs of ownership over the economic life, expressed in terms of equivalent dollars.
The concept of including acquisition, operating and disposal costs when evaluating various alternatives. Also known as the total cost of ownership. (PMI)
A procurement evaluation technique which determines the total cost of acquisition, operation, maintaining and disposal of the items acquired; the lowest ownership cost during the time the item is in use.
The full cost of an asset over its life. This includes all costs associated with acquiring, controlling, operating and disposing of the asset.
when evaluating alternatives, life cycle costing is the concept of including acquisition, operating and disposal costs.
In property management, comparing one type of equipment to another based on both purchase cost and operating cost over its expected useful lifetime.
An accounting method of costing where expenses are allocated over the life of the product. Life cycle costs are often lower for stainless steel than for alternatives despite a higher initial outlay, because stainless products generally last longer and require little maintenance.
Making allowances for life cycle cost. The whole-of-life cost of the property, includes regular maintenance, upgrades etc.
Advice on the total costs of a building throughout its useful life in order to evaluate and compare alternatives and to achieve optimum long-term cost benefits.
A technique that assesses alternatives and considers all relevant economic consequences over a period of time. It should be viewed as a supplemental tool to aid the architect and all project parties in decision making where both initial and continuing costs of design decisions are being considered.
A technique for analysing the cost of a product or system over its entire lifespan.
A method of calculating the cost and timing of the repairs to and replacement of major building components. Once the landlord has determined its long term strategy for the maintenance and replacement of the various elements in properties over a thirty or sixty year period, these estimated figures should form part of the exercise in establishing future rent levels for the properties.
a method of economic analysis that takes into account expected costs over the useful life of an asset.
