How Do You Create A Life Cycle Cost Estimate?
A life cycle cost estimate for a program is important because the manager is responsible for replacing a new program or project after the expected outcome or returns on investment were achieved. Read on to learn more about why an estimate is important. A project that is scheduled to be created and rolled-out during the course of a year or more typically deserves a life cycle cost estimate. So while the term cost estimate usually covers the time of idea determination to full deployment, the life cycle cost estimate includes the cost of maintaining the system and related personnel or administrative costs affiliated with the system during the duration of its functionality or useful life. While a life cycle cost estimate is composed of two overarching pieces, the development or production costs and the operations costs the two overlap depending on how soon administrative or support staff need to attend to it and at what cost. The development costs consist of the acquisitions, lease or prod
