AS/NZS 4536:1999

Sets out a process for life cycle costing of a product as a component of an economic evaluation. The Standard is intended for use by both customers (users) and suppliers of products. Following the proposed methodology will give a dollar value representing the life cycle cost of the product. Appendices propose hypothetical worked examples which reflect the use of the outlined analysis, a sample spreadsheet indicating typical costs that may occur over the life cycle phases, typical cost-generating activities and an elaboration of real cost, nominal cost and discounted cost.

This Standard details the process of life cycle costing and is intended for use by both customers (users) and suppliers of products. Following the process will give a dollar value representing the life cycle cost (LCC) of a product to satisfy an identified need, together with supporting and qualifying documentation.This Standard specifically excludes consideration of revenues. LCC includes acquisition ownership and disposal costs. Where products being compared give rise to different potential revenues these must be considered in the broader evaluation process. LCC is one input to the evaluation process.Definitions and discussion of the various components of life cycle costing are included. The Standard highlights many of the contributing elements for forming a life cycle costing model. It also provides definitions and descriptions to assist the development of a model along with the types of outputs that may suit a desired interpretation.Worked examples of life cycle costing exercises are included with sample evaluation and presentation pro formas.

First published as AS/NZS 4536:1999.