What do life cycle costs include?

Life cycle costs encompass all costs associated with the various stages of a system throughout its entire lifespan, which extends beyond just the initial acquisition or purchase price. This comprehensive view incorporates various expenditures, including but not limited to procurement costs, operation and maintenance expenses, training costs, and disposal fees incurred at the end of the system's life. Emphasizing the complete life cycle ensures that decision-makers consider not only upfront investments but also ongoing operational costs, ensuring a more accurate assessment of the total investment required over time. This holistic perspective is crucial in systems engineering to evaluate the true value and sustainability of a system throughout its operational existence.