life cycle costing – pls help!

This topic has 2 replies, 3 voices, and was last updated 5 years ago by John Moffat.

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December 9, 2020 at 1:14 am #598694
marlk
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is depreciation included in calculating life cycle costing
December 9, 2020 at 2:46 am #598699
irphern
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Yes, depreciation is included in life cycle costing
December 9, 2020 at 10:48 am #598771
John Moffat
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Be careful.

Any initial investment in machines etc.(and any later sales proceeds) are included in the costing. Depreciation is not included because including it would be charging the cost of the machines etc. twice. Include one or the other, but not both 🙂
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