Investopedia

Whole-Life Cost

Dictionary Says

Definition of 'Whole-Life Cost'

The total cost of owning an aset over its entire life. Whole life cast includes all costs such as design and building costs, operating costs, associated financing costs, depreciation, and disposal costs. Whole-life cost also takes certain costs that are usually overlooked into account, such as environmental impact and social costs.

Also known as a "life-cycle" cost.
Investopedia Says

Investopedia explains 'Whole-Life Cost'

When comparing investment decisions, an analyst must look at all potential future costs, not just acquisition expenses. While most costs can be readily measured or estimated, costs such as environmental or social impact cannot be easily quantified. Nevertheless, whole-life costing may provide a more accurate picture of the true cost of an asset than most other methods.

Articles Of Interest

  1. 10 Worst First-Time Homebuyer Mistakes

    These errors could wind up costing you more than the coveted key to your first home.
  2. Projected Returns: Honing The Craft

    Find out how to forecast long-term returns on the three major asset classes.
  3. Patents Are Assets, So Learn How To Value Them

    Innovation is the key to staying on top. Find out how companies protect their ideas and how to figure out how much they're worth.
  4. If You Don't Mind Volatility, Deere Could Still Do Alright

    Though Deere's shares sold off after earnings, the business model is sound and rolling along.
  5. Agilent Isn't Making It Easy On Investors

    Core operating performance at Agilent needs to improve
  6. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  7. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
  8. Overheated Expectations Send Rackspace Investors To The Torture Chamber

    Absent a real competitive moat, it's hard to make sense of Rackspace's valuation.
  9. Mondelez Isn't As Good As Nestle, But Priced Like It Is

    Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.
  10. Johnson Controls Has A Lot Of Improving Left To Do

    Analysts are projecting a big turnaround in Johnson Controls' margins, but that the downside risks are meaningful
comments powered by Disqus
Marketplace
Hot Definitions
  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center