What does life-cycle analysis consider in its evaluations?

Life-cycle analysis (LCA) is an important financial and environmental tool that assesses the total costs associated with a product or service over its entire life span. This method evaluates not just the initial purchase costs but also takes into account operating and maintenance costs throughout the usage phase, as well as disposal costs at the end of the product's life. By considering these multiple cost factors, life-cycle analysis provides a more comprehensive understanding of the true financial implications and environmental impact of a purchase.

This holistic approach helps organizations make informed decisions, as it reveals potential savings and environmental benefits that may not be apparent when looking at only the initial or singular cost aspects, such as purchase prices or disposal costs. This is crucial for organizations that aim to optimize their resources efficiently and sustainably over time.