Ownership costs timing indicates that what portion of total ownership costs occur late in the life cycle?

• A. 40-50% occur late in the life cycle.
• B. 90% occur early in the life cycle.
• C. 65-80% of the total ownership costs occur late in the life cycle.
• D. 10-20% occur late in the life cycle.

Answer: (C)

Most ownership costs accumulate during operation and maintenance, which occur late in the life cycle. While initial purchase and installation are important, they usually account for a minority of total ownership costs. In life-cycle cost analyses, about two-thirds to four-fifths of total ownership costs come from late-stage activities like O&M, repairs, replacements, and end-of-life actions. That’s why the correct range is roughly 65-80%.

The other options misplace where costs accrue: 40-50% is too low for late-life costs, 90% early would imply most costs happen upfront (not the case), and 10-20% late is far too small to reflect typical O&M and replacement expenses.