Which term is associated with the statement that 65-80% of total costs occur late in the life cycle due to operations and support?

Which term is associated with the statement that 65-80% of total costs occur late in the life cycle due to operations and support?

• A. Life Cycle Cost
• B. Flyaway Cost
• C. Total ownership costs
• D. Development Cost

Answer: (C)

The idea being tested is how costs accumulate over the life of an asset, with most spending occurring during operations and support rather than upfront. Total ownership costs capture this full picture, including acquisition, operation, maintenance, support, and disposal. The statement that 65-80% of total costs occur late in the life cycle due to operations and support aligns with TOC because it highlights the ongoing ownership burden and the prominence of O&S costs over time. While life cycle cost also covers these elements, the emphasis on the late-life, operations-and-support portion makes total ownership costs the best fit. Early costs like flyaway (procurement) and development are upfront and do not explain the large late-life share.

The idea being tested is how costs accumulate over the life of an asset, with most spending occurring during operations and support rather than upfront. Total ownership costs capture this full picture, including acquisition, operation, maintenance, support, and disposal. The statement that 65-80% of total costs occur late in the life cycle due to operations and support aligns with TOC because it highlights the ongoing ownership burden and the prominence of O&S costs over time. While life cycle cost also covers these elements, the emphasis on the late-life, operations-and-support portion makes total ownership costs the best fit. Early costs like flyaway (procurement) and development are upfront and do not explain the large late-life share.