Which of the following is a basic step in Whole Life Costing (WLC)?

Identifying relevant costs for calculating Total Cost of Ownership (TCO) is a fundamental step in Whole Life Costing (WLC). This process involves assessing all costs associated with an asset over its entire life cycle, including acquisition, operation, maintenance, and disposal costs. Understanding these relevant costs allows for a comprehensive view of financial implications tied to decisions regarding investments and asset management.

In Whole Life Costing, the premise is to go beyond just the initial purchase price and consider the broader financial impacts throughout the asset's lifetime. This ensures that decision-makers can make more informed choices that result in long-term financial benefits.

The other options do not adequately address the key components of WLC. For example, identifying future sales opportunities is more related to market analysis rather than cost assessment. Focusing solely on installation costs ignores ongoing expenses, which are crucial for a full analysis. Similarly, analyzing competitive bids exclusively may overlook a detailed evaluation of life-cycle costs, which is important for holistic decision-making. Thus, identifying relevant costs is the core of Whole Life Costing and is essential for ensuring that all factors are considered in financial planning.