Certified Healthcare Facility Manager (CHFM) Practice

Question: 1 / 400

What is the purpose of life cycle cost analysis?

To evaluate immediate costs of purchase

Assessment of the total costs over an asset's life

Life cycle cost analysis serves the critical purpose of assessing the total costs associated with an asset throughout its entire lifespan. This approach takes into account not just the initial purchase price, but also ongoing expenses, such as maintenance, operation, and eventual disposal costs. By evaluating the comprehensive financial implications over time, organizations can make more informed decisions that go beyond short-term savings or costs. This long-term perspective is essential for effective asset management in healthcare facilities, where investments may span many years and where total cost of ownership can significantly impact budgeting and resource allocation. Understanding the full life cycle cost helps in strategizing for financial efficiency and sustainability in facility management.

Get further explanation with Examzify DeepDiveBeta

To identify potential cost savings in the first year

To recommend annual budgeting for operations

Next Question

Report this question

Download Certified Healthcare Facility Manager (CHFM) Practice PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy