Which standard is associated with whole life costing?

The standard associated with whole life costing is ISO 56886. This ISO standard provides a framework for measuring the life cycle costs of a product or system, which is crucial in understanding the overall economic impact of an asset throughout its entire life span. Whole life costing encompasses all costs associated with the acquisition, operation, maintenance, and disposal of an asset. By adhering to ISO 56886, organizations ensure that they are accounting for not only initial capital expenditures but also ongoing operational and end-of-life costs, enabling better financial assessments and decisions regarding assets.

The focus of ISO 56886 on comprehensive cost analysis aligns with the goals of sustainable asset management, which is critical in industries that value long-term economic and environmental impacts. This standard's emphasis on a holistic view of costs supports responsible financial management practices that can lead to improved resource allocation and investment strategies.