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Cost assessment method

Life Cycle Cost (LCC)

Life Cycle Cost (LCC) is a method for assessing costs incurred across every stage of a product, system or investment lifecycle, from planning and design to retirement.

Related domain: FundingConcept ID: concept-life-cycle-cost

Definition

Life Cycle Cost (LCC) is a method for assessing costs incurred across every stage of a product, system or investment lifecycle, from planning and design to retirement.

Human Explanation

LCC includes costs at every stage of a solution’s life.

Why it Matters

It supports comparison of alternatives and more informed long-term decisions.

Conceptual Boundary

Its result depends on scope, data and assumptions and should not be the sole decision criterion.

Practical Perspective

Use it together with risk, cash-flow and strategic assessment.

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