LCC

Life cycle cost (LCC) refers to the total cost of owning, operating, maintaining, and eventually disposing of an asset over its entire lifespan. This includes initial purchase or construction costs, operating expenses such as energy and labor, maintenance and repair costs, and disposal or decommissioning costs at the end of its useful life. LCC is often used in decision-making processes to assess the long-term value and cost-effectiveness of investments, comparing alternatives based on their full financial impact rather than just the initial cost. By evaluating the total expenditure over time, LCC helps organizations optimize resources, reduce waste, and make sustainable choices that align with financial and environmental goals. It is especially crucial for large-scale infrastructure and equipment investments.