Question

understand the lifecycle costing and concept of cradle to grave

Answer 1

solution is posted below.

hope it helps.

a positive response from your side will be very helpful.

life cycle costing:

it id a technique to calculate or find out the total money one will spend in any asset in whole life of the asset or say money we need to spend on an asset over its useful life. the time we consider here is the time when it was purchased upto time when we get rid of it.

for example life cycle cost of a car not just comprises of it cost while buying it also adds up the money we spent in insurance,repairs and gas changes which helps us to assess the budget and its future cost.

life cycle costing includes various expenses: Purchase, Installation expenditure, expenditure in operation, Maintenance Financing ,Depreciation(loss in value of product with tine) , Disposal (when one wants to remove or get rid of the product)

uses:

1:to compare between two products: a asset cheaper while buying can have so much operation and maintenance cost that its future cost might become higher than that of one which cost more while buying.hence selecting the better product will be easier.

2: to calculate accurate budget: this technique help us to know how much money will be spent on the operation and maintenance of a machine so that budgeting will be easier.

cradle to grave:

it can also be called as life cycle assessment . it is a technique to measure the impact of product to the environment through various stages of its life such as manufacturing usage disposal and recycling.

all the input it takes from environment and all the waste and emission it gives back ti environment is considered

this consist of compiling everything environment is putting as input in the product like energy material input and also the output releases the product sends to environment.

potential impacts of input as well as output are checked and there impact is being observed and noted.

result is then compiled to checked for decision making on product.

can be used to compare between two product techniques if one has to be chosen after cradle to grave analysis of both we will select the one which has lesser negative impact on environment and consumes less resources.