As an Amazon Associate I earn from qualifying purchases.

Life Cycle Cost Definition and Explanation PDF Download

Learn Life Cycle Cost definition in marketing with explanation to study “What is Life-Cycle Cost”. Study life cycle cost explanation with marketing terms to review marketing course for online MBA programs.

Life Cycle Cost Definition:

  • Product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Life Cycle Cost Explanation:

Life-cycle cost examination is a technique for surveying the absolute expense of office possession. It considers all expenses of getting, owning, and discarding a structure or building framework. LCCA is particularly valuable when venture choices that satisfy a similar exhibition necessities, however contrast regarding starting expenses and working expenses, must be contrasted all together with select the one that boosts net reserve funds. For instance, LCCA will help decide if the consolidation of an elite HVAC or coating framework, which may build beginning expense however result in significantly diminished working and upkeep costs, is practical or not. LCCA isn't valuable for spending portion. Least life-cycle cost is the most clear and simple to-decipher proportion of financial assessment. Some other normally utilized measures are Net Savings (or Net Benefits), Savings-to-Investment Ratio (or Savings Benefit-to-Cost Ratio), Internal Rate of Return, and Payback Period.

Keep Learning Marketing Explanations

What is Intensive distribution?

It is the point at which a business overlooks integrated division and chooses to supply their item to each market ...

What is Marketing Intelligence System?

Market Intelligence System is a business investigation apparatus that examinations business information acquired from different sources-Customers, Competitors, inventory network, stores ...

What is Marketing Environment?

The promoting exercises of the business are influenced by a few inside and outer variables. The advertising condition of a ...

What is Maturity Stage?

During the development organize, deals will crest as the item arrives at market immersion, and rivalry will become progressively wild. ...

What is Direct Product Profitability (DDP)?

Direct product profitability is a technique of calculating product handling cost, it starts when it reaches warehouse till the process ...

What is Activity-Based Cost (ABC)?

Activity based costing is an accounting technique that defines and allocate costs to overhead functions after allocating those costs to ...