Advantages of life cycle costing

Life cycle costing (LCC) offers several advantages, including a comprehensive assessment of total costs associated with a product or project over its entire lifespan, from acquisition to disposal. This approach helps organizations make informed financial decisions by identifying long-term savings and potential cost drivers. Additionally, LCC promotes sustainability by encouraging the consideration of environmental impacts and resource use throughout the product's life cycle. Ultimately, it aids in optimizing budgeting and resource allocation, leading to more efficient operations.