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Project Management & Agile · Intermediate

Life Cycle Costing

Considering the total cost of ownership of a product over its entire life, not just development cost.

Definition

Includes acquisition, operation, maintenance, and disposal costs, and can justify higher upfront cost if lifetime cost is lower.

Example

A pricier server with lower power and maintenance costs has a lower life cycle cost.

Exam tip

Project decisions should consider operational costs after handover.

Related terms