Life Cycle Costing
Life Cycle Costing (LCC) is a financial analysis methodology used to estimate the total cost of ownership of an asset, product, or system over its entire life span, from acquisition through operation and maintenance to disposal. It involves calculating all direct and indirect costs associated with the asset, including initial purchase, installation, energy consumption, maintenance, repairs, and end-of-life costs. This approach helps organizations make more informed decisions by considering long-term financial implications rather than just upfront expenses.
Developers should learn Life Cycle Costing when working on projects involving hardware procurement, infrastructure planning, or sustainable software development, as it aids in evaluating the total cost of technology solutions over time. It is particularly useful in industries like manufacturing, construction, and IT infrastructure management, where long-term operational costs can significantly impact budgets and ROI. By applying LCC, developers can contribute to cost-effective and sustainable design choices, such as selecting energy-efficient servers or durable hardware components.