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Izmir IF!LIFE CYCLE COSTING IN INDUSTRY Task 6721 0September1967I Logistics Management Institute 4900 Massachusetts AV×., N, W. Washington, D. C. 20016Reproduced by the CLEARING HOUSE for Federal
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How to fill out life cycle costing in
How to fill out life cycle costing in
01
Start by gathering all the relevant data regarding the item or project that you want to calculate the life cycle cost for.
02
Identify all the costs associated with the item or project, including the initial purchase cost, operating costs, maintenance costs, and disposal costs.
03
Determine the expected lifespan of the item or project.
04
Calculate the present value of all the costs over the expected lifespan using a suitable discount rate.
05
Sum up all the present values to obtain the total life cycle cost.
06
Analyze and interpret the results, making any necessary adjustments or recommendations based on the obtained life cycle cost figure.
Who needs life cycle costing in?
01
Life cycle costing is needed by industries and organizations involved in the planning, procurement, or maintenance of long-term assets or projects.
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It is particularly useful for organizations involved in construction, manufacturing, infrastructure development, and large-scale asset management.
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Government agencies, engineering firms, real estate developers, and project managers can benefit greatly from using life cycle costing to make informed decisions about investments and resource allocation.
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Organizations seeking to optimize their asset management strategies, improve cost efficiency, and evaluate different alternatives can greatly benefit from implementing life cycle costing techniques.
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