Costs in the round
13 September 2012
In life-cycle costing, purchasers have to calculate all of the costs associated with buying, running and disposing of assets. Neil Fuller explains why it's emerged and how it works
Life-cycle costing considers the full-cost profile over the lifetime of the asset and is concerned with the full cost of ownership of a capital acquisition. This includes costs associated with acquiring the asset, including transaction costs, the cost of using the asset, maintaining it and its eventual disposal.
A full inventory of the costs associated with ownership...