Which cost category includes ongoing operations and support activities?

Which cost category includes ongoing operations and support activities?

• A. Operations and Support Cost
• B. Prime Mission Equipment Cost
• C. Disposal Cost
• D. Initial Spares Cost

Answer: (A)

In life-cycle cost analysis, costs are separated into procurement and sustainment (ongoing) categories. Ongoing operations and support activities fall under the Operations and Support Cost category. This grouping captures the day-to-day expenses needed to keep a system running after it’s fielded—such as maintenance, repairs, supply chain, personnel, training, facilities, and general system support—over the entire operating life. The other categories describe different phases or needs: Prime Mission Equipment Cost covers the upfront purchase price of the equipment itself; Disposal Cost covers end-of-life processing and decommissioning; Initial Spares Cost accounts for the spare parts stocked at beginning to support initial operations, not the ongoing sustainment costs.

In life-cycle cost analysis, costs are separated into procurement and sustainment (ongoing) categories. Ongoing operations and support activities fall under the Operations and Support Cost category. This grouping captures the day-to-day expenses needed to keep a system running after it’s fielded—such as maintenance, repairs, supply chain, personnel, training, facilities, and general system support—over the entire operating life.

The other categories describe different phases or needs: Prime Mission Equipment Cost covers the upfront purchase price of the equipment itself; Disposal Cost covers end-of-life processing and decommissioning; Initial Spares Cost accounts for the spare parts stocked at beginning to support initial operations, not the ongoing sustainment costs.