Life-cycle cost analysis (LCCA) is an economic analysis tool to determine the most
cost-effective option to purchase, run, sustain or dispose of an object or process. The method is popular in helping managers determine economic sustainability by figuring out the life cycle of a product or process.
Definition
The term differs slightly from
Total cost of ownership analysis (TCOA). LCCA determines the most
cost-effective option to purchase, run, sustain or dispose of an object or process, and TCOA is used by managers or buyers to analyze and determine the direct and indirect cost of an item.[1]
The term is used in the study of
Industrial ecology (IE). The purpose of IE is to help managers make informed decisions by tracking and analyzing products, resources and wastes.[2]
^Bearfield, Domonic A.; Dubnick, Melvin J. (2016). Encyclopedia of public administration and public policy (Third ed.). Boca Raton: Routledge. p. 466.
ISBN978-1466569096.