What does the 'Taxonomy method' refer to in the context of LCC analysis?

The 'Taxonomy method' in the context of Life Cycle Cost (LCC) analysis refers to a classification approach for evaluating costs. This method involves establishing a structured framework to categorize various types of costs associated with a product or system throughout its life cycle. By organizing costs into distinct categories, such as acquisition costs, operating costs, maintenance costs, and disposal costs, stakeholders can analyze and understand the financial implications of different decisions and design choices more effectively.

This approach enhances clarity and allows for comprehensive cost assessments, enabling decision-makers to identify areas for potential cost savings, compare different alternatives more effectively, and ultimately make informed choices that align with broader project and organizational goals. The taxonomy method is crucial for ensuring a thorough and systematic evaluation, making it a valuable tool within LCC analysis.