Life cycle costs include which of the following?

Life cycle costs include which of the following?

• A. Acquisition cost plus operating and end-of-life costs.
• B. Only purchase price.
• C. Only maintenance costs.
• D. Only disposal costs.

Answer: (A)

Life cycle costs represent the total economic impact of owning and using a product from purchase to disposal. This includes the initial acquisition cost, ongoing operating costs (like energy and maintenance), and end-of-life costs (such as disposal or decommissioning). Because it accounts for all phases, acquisition cost plus operating and end-of-life costs best reflects the full cost over the product’s life. Options that focus only on a single phase—purchase price, maintenance, or disposal—leave out other significant costs and can misstate the true economic picture.

Life cycle costs represent the total economic impact of owning and using a product from purchase to disposal. This includes the initial acquisition cost, ongoing operating costs (like energy and maintenance), and end-of-life costs (such as disposal or decommissioning). Because it accounts for all phases, acquisition cost plus operating and end-of-life costs best reflects the full cost over the product’s life. Options that focus only on a single phase—purchase price, maintenance, or disposal—leave out other significant costs and can misstate the true economic picture.