Life-cycle cost analysis helps decision-makers by evaluating what?

• A. Total cost of ownership from design through operation and disposal.
• B. Annual operating budgets for the current year.
• C. Forecasted revenue from airline leases for the next quarter.
• D. Marketing expenses for brand campaigns.

Answer: (C)

Life-cycle cost analysis focuses on the total cost of owning and operating an asset over its entire life, from design through operation and disposal. It accounts for more than just the upfront purchase price by including long-term expenses like maintenance, energy use, replacements, and end-of-life costs. This perspective lets decision-makers compare options based on long-term financial impact rather than short-term budgets or isolated revenues. The other options center on yearly budgets, revenue forecasts, or marketing expenses, which don’t capture the full lifetime cost the analysis is meant to quantify.