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What are the types of life cycle costing? There are three different types of LCC: conventional, environmental and societal.
Life Cycle Costing, in accounting terms, is the process of compiling all the costs the asset will incur over its lifespan. These costs include the initial investment, future additional investments, annually recurring costs, and salvage or disposal costs.
Life-cycle cost analysis is a process for evaluating the total economic worth of a usable project segment by analyzing initial costs and discounted future costs, such as maintenance, user, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of the project segment.
5 There are five distinct phases in a products life-cycle: a) Planning and development; b) Introduction and growth; c) Maturity; BCAS 11: Life Cycle Costing 10 Page 4 d) Decline; and e) Abandonment or renewal.
LCC means considering all the costs that will be incurred during the lifetime of the product, work or service: Purchase price and all associated costs (delivery, installation, insurance, etc.) Operating costs, including energy, fuel and water use, spares, and maintenance.

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In consideration of cost dependence, an LCC could be divided into the three categories of operation and maintenance cost, alternative cost, and construction cost. Some subclasses are also included in this classification, so that cost function can be defined.

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