What term is often used to describe costs incurred at the end of an asset's useful life?

The term that is often used to describe costs incurred at the end of an asset's useful life is "disposal costs." These costs typically refer to the expenses related to the handling, removal, and disposal of an asset when it is no longer useful or functional. Disposal costs can include expenses for recycling, decommissioning, or handling hazardous materials, depending on the nature of the asset.

Understanding disposal costs is important for asset management and financial forecasting, as these costs can impact the overall lifecycle cost of the asset. When planning for the acquisition and usage of an asset, it is crucial to consider not only the initial purchase and operational expenses but also what it will cost to dispose of the asset at the end of its life.

In contrast, capital costs are associated with the initial purchase and implementation of an asset, operational costs are ongoing expenses related to using and maintaining the asset during its lifecycle, and licensing costs refer to fees required to legally use certain software or intellectual property. Therefore, "disposal costs" specifically identifies the costs relevant at the end of an asset's useful life.