Lifecycle Costing and Depreciation

depreciation lifecycle costing

We have previously discussed several concepts related to Project Selection (listed here) and Lifecycle Costing and Depreciation are two more that you should know. These are fairly simple and, chances are, you may have already heard about them.


This is the rate at which the outcome of your project loses its value over the course of time.

For example, if you are working on a project creating the website for the next Fifa World cup, the website will lose its value tremendously after the World cup is over. So while selecting this project, it is very important to consider the ROI it is going to generate before the World cup ends.

Lifecycle Costing

Lifecycle costing takes into account not just the cost of delivering the project but also the cost of customer support services required to be in place after the project goes live.

For example, if you create a one of a kind online banking mobile phone app, you should also consider the cost of catering to the customer questions and requests after the app goes live.

Check more articles on Cost Management

Leave a Reply

Your email address will not be published. Required fields are marked *