life cycle costing

 Which one to pick


1) cost less to project but has more life cycle cost to customer


2) cost more to project but has less life cycle cost to customer.


 

admin's picture

It depends on the customer and the context. Either one can be true depending upon the customer needs

RP's picture

Generally, one would choose option 2 as life cycle costing considerations dictate that you look at the entire project and product thereof. It is subjective. These are choices, why don't you post the full question please.

 


 It is not a mock exam question. I read about it in Rita and wanted to confirm my understanding

RP's picture

Oh ok. Ultimately, you would want to control your overall maintenance costs and further, costs of preventing issues sooner (within project) could potentially be cheaper than rectifying it afterwards (during warranty phase, etc)